Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $288.00

Automatic Data Processing (NASDAQ:ADP) had its price target hoisted by Morgan Stanley from $286.00 to $288.00 in a research report released on Thursday morning,Benzinga reports. They currently have an equal weight rating on the business services provider’s stock.

Several other research firms have also issued reports on ADP. Guggenheim reiterated a “buy” rating and set a $340.00 price objective on shares of Automatic Data Processing in a research note on Thursday. Cantor Fitzgerald boosted their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, September 22nd. UBS Group upped their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. Finally, Stifel Nicolaus increased their target price on shares of Automatic Data Processing from $285.00 to $305.00 and gave the stock a “hold” rating in a research report on Thursday. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $283.27.

Automatic Data Processing Trading Up 2.7%

Shares of ADP opened at $293.84 on Thursday. Automatic Data Processing has a 1 year low of $188.16 and a 1 year high of $309.40. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98. The stock has a 50 day simple moving average of $277.25 and a 200-day simple moving average of $240.83. The stock has a market cap of $116.43 billion, a PE ratio of 26.05, a PEG ratio of 2.65 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping the consensus estimate of $2.77 by $0.05. The business had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. Automatic Data Processing’s revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the company earned $2.49 EPS. On average, sell-side analysts predict that Automatic Data Processing will post 12.36 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing’s payout ratio is presently 60.28%.

Insiders Place Their Bets

In related news, VP David Kwon sold 798 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total transaction of $223,440.00. Following the sale, the vice president directly owned 13,193 shares in the company, valued at $3,694,040. This represents a 5.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the business’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president directly owned 18,824 shares in the company, valued at approximately $5,324,744.88. This represents a 3.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 31,359 shares of company stock valued at $8,809,422 in the last 90 days. Insiders own 0.15% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ADP. BlackRock Inc. acquired a new position in Automatic Data Processing in the 2nd quarter valued at $8,097,229,000. Bank of America Corp DE acquired a new stake in shares of Automatic Data Processing during the second quarter worth $1,231,175,000. Deutsche Bank AG acquired a new stake in shares of Automatic Data Processing during the second quarter worth $994,937,000. Bank of New York Mellon Corp acquired a new stake in shares of Automatic Data Processing during the second quarter worth $725,513,000. Finally, Legal & General Group Plc bought a new stake in shares of Automatic Data Processing in the second quarter valued at about $562,425,000. 80.03% of the stock is owned by institutional investors.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.