Automatic Data Processing (NASDAQ:ADP) Reaches New 12-Month Low – Should You Sell?

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price reached a new 52-week low during trading on Wednesday . The company traded as low as $197.08 and last traded at $199.9980, with a volume of 469286 shares traded. The stock had previously closed at $203.18.

Automatic Data Processing News Summary

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

• Positive Sentiment: ADP’s own National Employment Report showed private‑sector employment rose by 62,000 in March and annual pay was up 4.5% — data that imply continued recurring revenue opportunity for ADP’s payroll and HCM products. ADP National Employment Report: Private Sector Employment Increased by 62,000 Jobs in March; Annual Pay was Up 4.5%
• Positive Sentiment: Zacks reports ADP data show job gains were concentrated in very small private firms (sub‑50 employees), a segment that can drive new client additions and higher per‑client penetration for ADP’s small‑business offerings. No Foolin’: ADP Jobs Led by Small Companies
• Positive Sentiment: Broader labor data: initial jobless claims came in lower than expected, pointing to a tighter labor market that supports stronger payrolls and, by extension, ADP’s addressable market. Jobless Claims Come in Lower-Than-Expected
• Positive Sentiment: Analyst/market commentary arguing investors should retain ADP highlights the company’s steady revenue growth, rising EPS outlook and solid dividend history — factors supporting longer‑term investor confidence. Here’s Why You Should Retain ADP Stock in Your Portfolio Now
• Neutral Sentiment: Some analysts/columnists frame ADP’s recent pullback as a potential valuation opportunity, which could attract value‑oriented buyers but reflects mixed sentiment about near‑term growth. Has The ADP (ADP) Share Price Slide Created A Valuation Opportunity?
• Neutral Sentiment: Markets are also watching upcoming manufacturing sector data and other macro prints that could move broad market sentiment and indirectly affect ADP’s stock. Market Awaits Manufacturing Sector Numbers
• Negative Sentiment: TD Cowen trimmed its ADP price target to $208 while maintaining a Hold rating, signaling reduced near‑term upside in some analysts’ views and potentially weighing on sentiment. TD Cowen trims ADP target to $208 ahead of Q3, maintains hold
• Negative Sentiment: Negative media commentary (e.g., Jim Cramer) suggesting ADP could be “disenfranchised” like peers may pressure retail sentiment and amplify selling in a down market. Jim Cramer on Automatic Data Processing, Inc.: “People have decided that this company can be disenfranchised just like Paychex”
• Negative Sentiment: Litigation risk: ADP 401(k) investors advanced an ERISA suit challenging plan fees, which could lead to legal costs, settlements or reputational impact if it progresses. ADP 401(k) Investors Advance ERISA Suit Challenging Plan Fees

Wall Street Analysts Forecast Growth

ADP has been the topic of a number of research analyst reports. Morgan Stanley reduced their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Citigroup reduced 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. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Finally, Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $284.77.

Automatic Data Processing Stock Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The stock has a 50 day moving average of $219.38 and a 200 day moving average of $251.13. The stock has a market capitalization of $82.14 billion, a P/E ratio of 19.62 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same period last year, the business posted $2.35 earnings per share. The firm’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. Equities analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th were paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend was Friday, March 13th. Automatic Data Processing’s payout ratio is presently 65.38%.

Automatic Data Processing declared that its board has initiated a share repurchase plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction that occurred 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 sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP David Kwon sold 900 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the sale, the vice president directly owned 11,993 shares in the company, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,058 shares of company stock worth $1,000,263 in the last quarter. Company insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its stake in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after buying an additional 4,808 shares during the period. Bison Wealth LLC lifted its stake in shares of Automatic Data Processing by 22.8% in the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock worth $1,073,000 after acquiring an additional 681 shares during the period. Schnieders Capital Management LLC. boosted its holdings in shares of Automatic Data Processing by 21.8% in the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock valued at $388,000 after acquiring an additional 225 shares in the last quarter. Edgestream Partners L.P. bought a new position in shares of Automatic Data Processing in the second quarter valued at approximately $2,218,000. Finally, Fisher Asset Management LLC increased its stake in shares of Automatic Data Processing by 42.8% during the second quarter. Fisher Asset Management LLC now owns 5,477 shares of the business services provider’s stock valued at $1,689,000 after acquiring an additional 1,641 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.