Stifel Nicolaus Has Lowered Expectations for Automatic Data Processing (NASDAQ:ADP) Stock Price

Posted by Alphonse Anthony on Jan 29th, 2026

Automatic Data Processing (NASDAQ:ADP – Get Free Report) had its price target reduced by Stifel Nicolaus from $290.00 to $280.00 in a report issued on Thursday,Benzinga reports. The firm presently has a “hold” rating on the business services provider’s stock. Stifel Nicolaus’ price objective suggests a potential upside of 13.09% from the stock’s previous close.

ADP has been the topic of a number of other reports. Citigroup assumed coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target on the stock. JPMorgan Chase & Co. dropped their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Cantor Fitzgerald initiated coverage on Automatic Data Processing in a research note on Tuesday. They issued an “overweight” rating and a $306.00 price target on the stock. Finally, Wells Fargo & Company dropped their price objective on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $302.69.

View Our Latest Analysis on Automatic Data Processing

Automatic Data Processing Stock Performance

ADP stock traded down $3.10 on Thursday, hitting $247.59. The company’s stock had a trading volume of 887,336 shares, compared to its average volume of 2,145,235. The firm has a 50 day moving average of $258.55 and a two-hundred day moving average of $278.55. Automatic Data Processing has a 1 year low of $247.18 and a 1 year high of $329.93. The stock has a market cap of $100.14 billion, a price-to-earnings ratio of 24.44 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP – Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the business posted $2.35 earnings per share. Automatic Data Processing’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities analysts predict that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

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

Insider Buying and Selling

In related news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president directly owned 9,998 shares in the company, valued at $2,622,375.42. The trade was a 5.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP David Kwon sold 900 shares of the stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the sale, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 2,249 shares of company stock valued at $589,852. Corporate insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Imprint Wealth LLC purchased a new position in Automatic Data Processing during the third quarter worth approximately $25,000. Harbor Asset Planning Inc. acquired a new position in Automatic Data Processing in the second quarter valued at $26,000. Mid American Wealth Advisory Group Inc. acquired a new stake in Automatic Data Processing during the second quarter worth about $26,000. Howard Hughes Medical Institute purchased a new position in shares of Automatic Data Processing in the 2nd quarter worth about $27,000. Finally, Solstein Capital LLC purchased a new position in shares of Automatic Data Processing in the 2nd quarter worth about $28,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Key Automatic Data Processing News

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

Positive Sentiment: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue $5.36B (+6.2% Y/Y); management raised FY2026 guidance. This fundamental beat and guidance lift are the primary positive catalysts. ADP boosts guidance after Q2 earnings, revenue beat on strong Employer Services performance
Positive Sentiment: Management reiterated an upbeat outlook on the earnings call and emphasized a sizable buyback program (authorized $6B in January) — supports EPS accretion and signals management confidence in the share base. ADP Earnings Call Highlights Upbeat Outlook and Buyback
Positive Sentiment: Product/AI innovation: ADP launched ADP Assist AI agents to automate HR and payroll tasks — strengthens product differentiation and addressable market for subscription services. ADP Accelerates AI Leadership with Launch of New AI Agents Designed to Solve Workforce Challenges
Positive Sentiment: Sell-side interest: Cantor Fitzgerald initiated coverage with an overweight call, which can help buy-side attention and liquidity. Cantor Fitzgerald initiates coverage of Automatic Data Processing (ADP) with overweight recommendation
Neutral Sentiment: Earnings materials and call transcript available for deeper read — management provided slides, a transcript and detailed metrics that investors can model into FY2026 EPS range of ~10.09–11.01. Automatic Data Processing Inc (ADP) Q2 2026 Earnings Call Highlights
Negative Sentiment: Hiring weakness / valuation concerns: commentary that client headcount growth is soft and a recent analysis flagged that ADP still looks pricey given macro headwinds — these factors likely explain selling pressure despite the beat. Automatic Data Processing: Still Expensive Given Macro Headwinds

Automatic Data Processing Company Profile

(Get Free Report)

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.