Automatic Data Processing (NASDAQ:ADP) Now Covered by Analysts at Cantor Fitzgerald

Equities research analysts at Cantor Fitzgerald began coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a research note issued on Tuesday,Benzinga reports. The firm set an “overweight” rating and a $306.00 price target on the business services provider’s stock. Cantor Fitzgerald’s price target suggests a potential upside of 18.53% from the stock’s current price.

Other equities research analysts also recently issued research reports about the stock. Citigroup started 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 target on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. 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. JPMorgan Chase & Co. dropped their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Finally, Wells Fargo & Company cut their target price on 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. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $306.38.

Automatic Data Processing Price Performance

ADP stock opened at $258.17 on Tuesday. The firm has a market cap of $104.42 billion, a P/E ratio of 25.49 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing has a 1 year low of $247.18 and a 1 year high of $329.93. The stock has a 50-day simple moving average of $258.45 and a 200-day simple moving average of $279.09.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The firm had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the prior year, the business earned $2.33 EPS. Automatic Data Processing’s quarterly revenue was up 7.1% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has authorized a share buyback program 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 repurchase up to 5.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, VP David Kwon sold 900 shares of the business’s stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the sale, the vice president owned 11,993 shares of the company’s stock, valued at $3,118,180. This represents a 6.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 sale, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 2,249 shares of company stock valued at $589,852 over the last ninety days. 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 stock. Exchange Traded Concepts LLC raised its position in Automatic Data Processing by 141.5% in the third quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider’s stock worth $3,899,000 after acquiring an additional 7,782 shares in the last quarter. Treasurer of the State of North Carolina grew its stake in shares of Automatic Data Processing by 35.2% in the 2nd quarter. Treasurer of the State of North Carolina now owns 312,473 shares of the business services provider’s stock worth $96,367,000 after purchasing an additional 81,323 shares during the last quarter. CIBC Asset Management Inc raised its holdings in shares of Automatic Data Processing by 2.6% in the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock worth $53,875,000 after purchasing an additional 4,720 shares in the last quarter. Farther Finance Advisors LLC lifted its stake in Automatic Data Processing by 17.5% during the third quarter. Farther Finance Advisors LLC now owns 13,956 shares of the business services provider’s stock valued at $4,096,000 after purchasing an additional 2,075 shares during the last quarter. Finally, Peak Financial Advisors LLC bought a new stake in Automatic Data Processing during the third quarter worth approximately $2,309,000. 80.03% of the stock is currently owned by institutional investors.

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.