Guggenheim Begins Coverage on Automatic Data Processing (NASDAQ:ADP)

Guggenheim initiated coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a note issued to investors on Thursday, Marketbeat.com reports. The brokerage set a “buy” rating and a $270.00 price target on the business services provider’s stock. Guggenheim’s price target would indicate a potential upside of 29.36% from the company’s current price.

A number of other research analysts also recently commented on the stock. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Morgan Stanley reduced their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 29th. JPMorgan Chase & Co. decreased their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Cantor Fitzgerald began coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective for the company. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $288.46.

Automatic Data Processing Trading Down 0.9%

Shares of ADP opened at $208.72 on Thursday. The stock has a market capitalization of $84.04 billion, a PE ratio of 20.07 and a beta of 0.86. The company’s fifty day moving average is $229.28 and its 200 day moving average is $256.96. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. Automatic Data Processing has a fifty-two week low of $203.26 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same quarter last year, the business earned $2.35 earnings per share. Automatic Data Processing’s quarterly revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing declared that its board has approved a share repurchase plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In related news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,058 shares of company stock valued at $1,000,263 over the last quarter. 0.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in Automatic Data Processing by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock valued at $12,235,907,000 after buying an additional 389,451 shares during the period. State Street Corp increased its position in shares of Automatic Data Processing by 0.7% during the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider’s stock worth $4,903,769,000 after acquiring an additional 133,039 shares during the period. Geode Capital Management LLC increased its position in shares of Automatic Data Processing by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock worth $2,977,777,000 after acquiring an additional 136,876 shares during the period. Capital Research Global Investors raised its stake in shares of Automatic Data Processing by 4.6% during the fourth quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock valued at $2,159,088,000 after acquiring an additional 372,413 shares in the last quarter. Finally, Wellington Management Group LLP raised its stake in shares of Automatic Data Processing by 8.0% during the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock valued at $1,896,944,000 after acquiring an additional 544,210 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing News Roundup

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Guggenheim initiated coverage of ADP with a Buy / Strong‑Buy rating and a $270 price target (roughly ~29% upside from recent levels); the firm argued AI fears are premature and flagged ADP’s durable cash flows and dividend profile as positives. Guggenheim initiates coverage of Automatic Data Processing (ADP) with buy recommendation Guggenheim Initiates ADP as Buy, Says Fears around AI Are Premature Zacks summary
• Neutral Sentiment: ADP was highlighted in dividend-stock writeups (InsiderMonkey / other outlets) emphasizing its ~3%+ yield and steady income characteristics — supports longer-term investor interest but is not an immediate catalyst. 5 Dividend Stocks to Buy for Steady Income
• Neutral Sentiment: Published short‑interest data in feeds shows a large March “increase,” but the print is internally inconsistent (zeros/NaN). This appears to be a data error and shouldn’t be treated as a genuine short‑squeeze signal without corrected filings.
• Negative Sentiment: MarketWatch noted ADP underperformed peers recently despite some daily gains, a reminder that positive analyst notes don’t always produce immediate outperformance — investors may be taking profits or reacting to broader market/sector pressure. Automatic Data Processing Inc. stock underperforms

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.