Automatic Data Processing (NASDAQ:ADP) Price Target Cut to $305.00 by Analysts at Mizuho

Automatic Data Processing (NASDAQ:ADP) had its price target lowered by Mizuho from $332.00 to $305.00 in a research note published on Thursday morning,MarketScreener reports.

Other 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 objective for the company. Citigroup lowered their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating for the company in a research report on Thursday. Robert W. Baird lowered their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday. Stifel Nicolaus dropped their target price on Automatic Data Processing from $270.00 to $240.00 in a report on Thursday. Finally, JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. One research 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 assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $254.40.

Automatic Data Processing Stock Down 0.6%

Automatic Data Processing stock traded down $1.38 during mid-day trading on Thursday, hitting $210.57. 463,293 shares of the company’s stock were exchanged, compared to its average volume of 3,419,975. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $329.93. The stock has a market cap of $84.78 billion, a P/E ratio of 19.62 and a beta of 0.85. The stock has a 50 day moving average of $206.67 and a two-hundred day moving average of $238.64. The company has a current ratio of 1.04, a quick ratio of 1.03 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, topping analysts’ consensus estimates of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.85 billion. During the same period in the previous year, the firm earned $3.06 earnings per share. The firm’s quarterly revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, analysts anticipate that Automatic Data Processing will post 11.06 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has initiated a share repurchase plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

Insider Activity at Automatic Data Processing

In other news, VP David Foskett sold 266 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the transaction, the vice president owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,809 shares of company stock worth $410,410. 0.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in Automatic Data Processing by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after buying an additional 389,451 shares during the period. State Street Corp increased its stake in Automatic Data Processing by 0.7% in the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider’s stock worth $4,903,769,000 after buying an additional 133,039 shares during the period. Geode Capital Management LLC increased its stake in Automatic Data Processing by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock worth $2,977,777,000 after buying an additional 136,876 shares during the period. Capital Research Global Investors increased its stake in Automatic Data Processing by 4.6% in the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock worth $2,159,088,000 after buying an additional 372,413 shares during the period. Finally, Wellington Management Group LLP increased its stake in Automatic Data Processing by 8.0% in the 4th quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock worth $1,896,944,000 after buying an additional 544,210 shares during the period. Institutional investors own 80.03% of the company’s stock.

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.