Guggenheim Reaffirms Buy Rating for Automatic Data Processing (NASDAQ:ADP)

Automatic Data Processing (NASDAQ:ADP)‘s stock had its “buy” rating reiterated by research analysts at Guggenheim in a research report issued on Tuesday,Benzinga reports. They currently have a $270.00 target price on the business services provider’s stock. Guggenheim’s target price would suggest a potential upside of 11.06% from the company’s previous close.

ADP has been the subject of several other research reports. Wells Fargo & Company raised their price objective on shares of Automatic Data Processing from $214.00 to $248.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 9th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Automatic Data Processing in a research report on Tuesday, July 7th. Cantor Fitzgerald cut their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 29th. TD Cowen raised their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a report on Monday, July 6th. Finally, Morgan Stanley decreased their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 28th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and an average price target of $256.00.

Automatic Data Processing Stock Down 1.3%

Shares of Automatic Data Processing stock opened at $243.12 on Tuesday. Automatic Data Processing has a one year low of $188.16 and a one year high of $315.98. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The stock’s 50-day moving average is $230.21 and its 200 day moving average is $224.41. The firm has a market cap of $97.18 billion, a price-to-earnings ratio of 22.68 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, topping the consensus estimate of $3.30 by $0.07. The business had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm’s revenue was up 7.0% on a year-over-year basis. During the same quarter last year, the firm posted $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Equities research analysts anticipate that Automatic Data Processing will post 11.08 EPS for the current year.

Hedge Funds Weigh In On Automatic Data Processing

Large investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. grew its position in Automatic Data Processing by 6,493.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after purchasing an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. lifted its position in shares of Automatic Data Processing by 950.1% during the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock worth $916,557,000 after buying an additional 3,223,855 shares in the last quarter. Norges Bank bought a new position in shares of Automatic Data Processing during the 4th quarter worth approximately $721,738,000. Clearbridge Investments LLC boosted its stake in shares of Automatic Data Processing by 133.3% in the 4th quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock worth $434,151,000 after buying an additional 964,405 shares during the last quarter. Finally, Amundi boosted its stake in shares of Automatic Data Processing by 27.7% in the 1st quarter. Amundi now owns 3,034,002 shares of the business services provider’s stock worth $616,449,000 after buying an additional 658,932 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Cantor Fitzgerald raised its price target on ADP to $295 from $244 and reiterated an overweight rating, signaling meaningful upside from current levels. Cantor Fitzgerald raises ADP price target
• Positive Sentiment: UBS also lifted its price target on ADP to $270 from $260 while maintaining a neutral view, adding to the stock’s recent analyst support. UBS raises ADP price target
• Positive Sentiment: Zacks noted that ADP has gained about 23% over the past three months, supported by margin expansion, strong earnings growth, steady dividends, and solid liquidity. ADP stock gains 23% in 3 months
• Positive Sentiment: ADP said its latest weekly private payroll estimate showed U.S. private employers added an average of 16,500 jobs per week for the four weeks ending July 4, reinforcing the company’s payroll data relevance. ADP National Employment Report preliminary estimate
• Neutral Sentiment: ADP’s June private-sector hiring report came in slightly below economists’ expectations, with 98,000 jobs added versus forecasts for 110,000, which may temper enthusiasm but does not indicate a major setback. ADP June private-sector hiring report
• Neutral Sentiment: ADP is expected to report earnings next week, and Zacks says the setup still looks favorable for a potential earnings beat, but this remains an anticipatory catalyst rather than a confirmed result. ADP earnings expectations ahead of release
• Negative Sentiment: MarketWatch noted ADP underperformed peers on Tuesday, suggesting some near-term relative weakness versus competitors. ADP underperforms competitors

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.