Wells Fargo & Company Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $214.00

Automatic Data Processing (NASDAQ:ADP) had its price target trimmed by Wells Fargo & Company from $262.00 to $214.00 in a research report released on Friday morning,Benzinga reports. The firm currently has an underweight rating on the business services provider’s stock.

Other equities analysts have also recently issued research reports about the company. Cantor Fitzgerald started coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target for the company. Citigroup dropped their price objective on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Finally, Stifel Nicolaus dropped their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $284.77.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $201.25 on Friday. Automatic Data Processing has a 1-year low of $198.59 and a 1-year high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a fifty day simple moving average of $223.75 and a 200 day simple moving average of $253.10. The stock has a market capitalization of $81.03 billion, a PE ratio of 19.35 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The business had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the previous year, the company earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, research analysts expect that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.4%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is 65.38%.

Automatic Data Processing declared that its board has approved a share buyback program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president owned 8,912 shares in the company, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 4,058 shares of company stock valued at $1,000,263. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of hedge funds have recently modified their holdings of the business. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing in the third quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Automatic Data Processing in the fourth quarter worth approximately $26,000. Howard Hughes Medical Institute bought a new stake in Automatic Data Processing in the second quarter valued at approximately $27,000. TruNorth Capital Management LLC bought a new stake in Automatic Data Processing in the third quarter valued at approximately $28,000. Finally, Bard Associates Inc. acquired a new stake in Automatic Data Processing during the 4th quarter valued at approximately $28,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.