Automatic Data Processing (NASDAQ:ADP) Price Target Cut to $230.00 by Analysts at Citigroup

Automatic Data Processing (NASDAQ:ADP) had its target price decreased by investment analysts at Citigroup from $265.00 to $230.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has a “neutral” rating on the business services provider’s stock. Citigroup’s price objective would indicate a potential upside of 8.45% from the stock’s previous close.

A number of other research firms have also recently weighed in on ADP. Guggenheim started coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 price objective for the company. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating for the company in a report on Friday, March 27th. JPMorgan Chase & Co. cut their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Cantor Fitzgerald cut their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, TD Cowen boosted their target price on shares of Automatic Data Processing from $208.00 to $216.00 and gave the stock a “hold” rating in a research note on Thursday. 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $259.64.

Automatic Data Processing Stock Performance

ADP traded down $2.98 on Thursday, reaching $212.08. The stock had a trading volume of 1,996,362 shares, compared to its average volume of 3,428,630. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The business’s 50-day moving average price is $206.75 and its two-hundred day moving average price is $238.83. The company has a market cap of $85.39 billion, a P/E ratio of 20.44 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating analysts’ consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.85 billion. During the same quarter in the previous year, the company earned $3.06 earnings per share. 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. Sell-side analysts forecast that Automatic Data Processing will post 10.96 earnings per share for the current year.

Automatic Data Processing announced that its board has approved a share repurchase program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction dated Thursday, February 5th. The shares were 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 represents a 2.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,809 shares of company stock valued at $410,410 over the last 90 days. Corporate insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several large investors have recently bought and sold shares of ADP. Imprint Wealth LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new stake in Automatic Data Processing during the 4th quarter valued at about $26,000. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at about $28,000. Bard Associates Inc. purchased a new stake in Automatic Data Processing during the 4th quarter valued at about $28,000. Finally, Cloud Capital Management LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at about $29,000. Hedge funds and other 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 results beat expectations — ADP reported EPS of $3.37 (vs. ~$3.30 consensus) and revenue of $5.94B, with revenue up ~7% year?over?year. The beat supports continued core business momentum. ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: ADP nudged FY26 guidance slightly above Street forecasts (EPS guide 11.010–11.110 vs. consensus ~10.96), a signal management sees sustained earnings power. ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Management highlighted AI-driven product gains on the earnings call, which it cited as a growth catalyst and part of the upward guidance discussion. This frames longer?term incremental revenue/efficiency upside. ADP Earnings Call: AI Gains, Guidance Raised
• Neutral Sentiment: Full earnings materials and call transcript/slide deck are available for deeper diligence — useful for parsing customer commentary, margin drivers, and AI pipeline details. Earnings Slide Deck Q3 2026 Earnings Call Transcript
• Negative Sentiment: Two firms trimmed price targets this week — Cantor Fitzgerald cut its PT to $244 (keeps Overweight) and Morgan Stanley trimmed its PT to $274 (keeps Equal?Weight). Those downgrades reduce upside expectations and likely weigh on sentiment despite the beat. Cantor Fitzgerald Adjusts Price Target on Automatic Data Processing to $244 from $306; Maintains Overweight Morgan Stanley Adjusts Price Target on Automatic Data Processing to $274 from $311; Maintains Equal?Weight

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.