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

Automatic Data Processing (NASDAQ:ADP)‘s stock had its “buy” rating reaffirmed by investment analysts at Guggenheim in a report released on Tuesday,Benzinga reports. They presently have a $270.00 price objective on the business services provider’s stock. Guggenheim’s price target suggests a potential upside of 7.31% from the company’s current price.

Several other equities research analysts also recently weighed in on ADP. Wells Fargo & Company increased their price target on Automatic Data Processing from $214.00 to $248.00 and gave the stock an “equal weight” rating in a report on Thursday, July 9th. Argus cut their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating for the company in a research report on Tuesday, May 5th. TD Cowen raised their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a research note on Monday, July 6th. Cantor Fitzgerald lowered 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 report on Wednesday, April 29th. Finally, UBS Group boosted their price target on shares of Automatic Data Processing from $210.00 to $218.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average price target of $248.64.

Automatic Data Processing Stock Performance

ADP stock traded down $3.64 during trading on Tuesday, hitting $251.60. The company had a trading volume of 115,822 shares, compared to its average volume of 3,163,409. The firm has a 50-day moving average price of $228.87 and a 200-day moving average price of $224.58. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The firm has a market cap of $100.57 billion, a PE ratio of 23.52 and a beta of 0.83. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $315.98.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. increased its stake in shares of Automatic Data Processing by 6,493.0% during 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. increased its position in Automatic Data Processing by 950.1% during the fourth 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 purchased a new position in Automatic Data Processing during the fourth quarter worth $721,738,000. Clearbridge Investments LLC raised its holdings in shares of Automatic Data Processing by 133.3% in the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock worth $434,151,000 after acquiring an additional 964,405 shares during the last quarter. Finally, Amundi raised its holdings in shares of Automatic Data Processing by 27.7% in the first quarter. Amundi now owns 3,034,002 shares of the business services provider’s stock worth $616,449,000 after acquiring an additional 658,932 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

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.