Stifel Nicolaus Issues Pessimistic Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its target price cut by research analysts at Stifel Nicolaus from $290.00 to $280.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has a “hold” rating on the business services provider’s stock. Stifel Nicolaus’ price objective would indicate a potential upside of 13.44% from the company’s previous close.

Several other research firms have also weighed in on ADP. Citigroup initiated coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective on the stock. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a report on Tuesday. They issued an “overweight” rating and a $306.00 target price on the stock. Wells Fargo & Company reduced their price target on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $295.38.

Automatic Data Processing Stock Up 0.3%

Shares of Automatic Data Processing stock opened at $246.82 on Thursday. The business has a fifty day simple moving average of $258.36 and a 200 day simple moving average of $277.93. The stock has a market cap of $99.83 billion, a PE ratio of 23.73 and a beta of 0.86. The company has a quick ratio of 1.05, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 12 month low of $243.68 and a 12 month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter in the prior year, the firm posted $2.35 earnings per share. The company’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts predict that Automatic Data Processing will post 9.93 EPS for the current year.

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

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP David Kwon sold 900 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the sale, the vice president directly owned 11,993 shares in the company, valued at $3,118,180. This represents a 6.98% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 2,249 shares of company stock valued at $589,852. Company insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Several institutional investors have recently bought and sold shares of the company. Jacobsen Capital Management raised its holdings in shares of Automatic Data Processing by 3.8% in the second quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock valued at $280,000 after purchasing an additional 33 shares during the last quarter. Signature Wealth Management Group grew its position in Automatic Data Processing by 2.3% in the second quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock valued at $447,000 after purchasing an additional 33 shares in the last quarter. Ameritas Advisory Services LLC increased its stake in Automatic Data Processing by 2.1% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider’s stock valued at $502,000 after buying an additional 34 shares during the last quarter. PGIM Custom Harvest LLC increased its stake in Automatic Data Processing by 4.9% in the 2nd quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock valued at $223,000 after buying an additional 34 shares during the last quarter. Finally, Texas Yale Capital Corp. lifted its position in Automatic Data Processing by 0.4% during the 2nd quarter. Texas Yale Capital Corp. now owns 8,333 shares of the business services provider’s stock worth $2,570,000 after buying an additional 35 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.

Key Automatic Data Processing News

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

• Positive Sentiment: Q4 / Q2 results and guidance — ADP beat revenue and EPS estimates, showed broad-based growth and margin stability, and set FY26 EPS guidance above street projections; management reiterated an upbeat outlook and a buyback. These execution and capital-allocation signals support the stock’s upward reaction. ADP Q4 Deep Dive
• Positive Sentiment: Earnings call takeaways — summaries and highlights (management tone, buyback, and stronger Employer Services performance) reinforced the beat-and-raise narrative that underpins near-term fundamentals. ADP Earnings Call Highlights
• Neutral Sentiment: New coverage and analyst reports — Cantor Fitzgerald initiated coverage and independent analyst notes (Argus) provide fresh research flow that can increase trading interest but are mixed in directional impact. Coverage Initiated at Cantor Fitzgerald Analyst Report: Automatic Data Processing Inc.
• Negative Sentiment: Multiple price‑target cuts and downgrades — Morgan Stanley, Citigroup, JPMorgan, Wells Fargo and Stifel trimmed targets and moved to neutral/underweight/hold stances, signaling reduced analyst conviction and pressuring investor sentiment despite upside still implied by some revised targets. Benzinga coverage of analyst actions
• Negative Sentiment: 52‑week low headline — reports that ADP hit a 52‑week low attract attention and can trigger short-term selling or defensive positioning by momentum and quant funds. Adp stock hits 52-week low

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.