Jefferies Financial Group Has Lowered Expectations for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its target price reduced by equities researchers at Jefferies Financial Group from $230.00 to $190.00 in a research note issued on Thursday,MarketScreener reports. Jefferies Financial Group’s target price would suggest a potential downside of 9.33% from the company’s current price.

Other equities analysts have also recently issued research reports about the stock. Guggenheim began coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They issued a “buy” rating and a $270.00 price target for the company. Robert W. Baird decreased their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday. 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 report on Tuesday. JPMorgan Chase & Co. decreased their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Finally, TD Cowen raised their price target on shares of Automatic Data Processing from $208.00 to $216.00 and gave the company a “hold” rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $254.40.

Automatic Data Processing Trading Down 1.1%

Automatic Data Processing stock traded down $2.40 during trading on Thursday, hitting $209.54. The company had a trading volume of 244,022 shares, compared to its average volume of 3,417,466. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $329.93. The company has a current ratio of 1.04, a quick ratio of 1.03 and a debt-to-equity ratio of 0.63. The company’s 50 day simple moving average is $206.67 and its 200-day simple moving average is $238.64. The stock has a market cap of $84.37 billion, a price-to-earnings ratio of 19.57 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last posted 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. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter last year, the firm earned $3.06 EPS. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, analysts expect that Automatic Data Processing will post 11.06 EPS for the current fiscal year.

Automatic Data Processing announced that its board has initiated a stock buyback program on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Transactions at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president directly owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president directly owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,809 shares of company stock valued at $410,410. Insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Institutional investors have recently modified their holdings of the company. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth $25,000. TruNorth Capital Management LLC acquired a new position in Automatic Data Processing in the third quarter valued at $28,000. Cloud Capital Management LLC acquired a new position in Automatic Data Processing in the third quarter valued at $29,000. Cornerstone Financial Management LLC acquired a new position in shares of Automatic Data Processing during the fourth quarter worth about $26,000. Finally, Y.D. More Investments Ltd acquired a new position in shares of Automatic Data Processing during the third quarter worth about $32,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Q3 beat and guidance lift — ADP reported EPS of $3.37 and raised FY2026 adjusted EPS growth to 10%–11% and revenue growth to 6%–7%, supporting revenue resiliency and higher forward earnings expectations. ADP forecasts FY 2026 adjusted EPS growth of 10%-11% as it raises revenue
• Positive Sentiment: Company commentary highlighted strong payroll services demand and AI-related gains on the earnings call, reinforcing the revenue/operating leverage story. ADP Earnings Call: AI Gains, Guidance Raised
• Neutral Sentiment: UBS raised its price target to $218 with a “neutral” rating — a modest upside relative to current levels that signals limited near-term analyst enthusiasm. Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $218.00 at UBS Group
• Neutral Sentiment: TD Cowen nudged its target to $216 (hold), another small upward tweak that keeps expectations broadly in the “flat to modest upside” camp. TD Cowen Issues Positive Forecast for Automatic Data Processing (NASDAQ:ADP) Stock Price
• Neutral Sentiment: Cantor Fitzgerald cut its target to $244 from $306 but retained an overweight rating — still implying upside, though the reset tempering upside expectations from prior levels. Cantor Fitzgerald adjusts price target on Automatic Data Processing
• Negative Sentiment: Citigroup lowered its target meaningfully (from $265 to $230) and kept a neutral stance — a direct headwind that likely weighs on sentiment despite the beat. Automatic Data Processing (NASDAQ:ADP) Given New $230.00 Price Target at Citigroup
• Negative Sentiment: Mixed analyst moves and valuation debate — while some targets were raised, several were trimmed and commentators are re-assessing valuation after the recent rebound, creating short-term uncertainty. Assessing Automatic Data Processing’s Valuation After Recent Share Price Rebound
• Negative Sentiment: Technical/market context: ADP’s 50-day SMA sits below the 200-day SMA and current price sits well under its one-year high — technical resistance and mixed macro tone may pressure the stock despite fundamentals. (Company filings and market data)

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.