Wells Fargo & Company Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $262.00

Automatic Data Processing (NASDAQ:ADP) had its target price cut by Wells Fargo & Company from $272.00 to $262.00 in a research report report published on Thursday morning,Benzinga reports. They currently have an underweight rating on the business services provider’s stock.

A number of other brokerages also recently weighed in on ADP. Citigroup began coverage on Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target on the stock. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Stifel Nicolaus reduced their price objective on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating for the company in a research report on Thursday. JPMorgan Chase & Co. dropped their price objective on shares of 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. Finally, Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $295.38.

Automatic Data Processing Price Performance

Shares of ADP opened at $246.82 on Thursday. The company has a quick ratio of 1.05, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a twelve month low of $243.68 and a twelve month high of $329.93. The stock has a market capitalization of $99.83 billion, a P/E ratio of 23.73 and a beta of 0.86. The company has a 50 day moving average of $258.36 and a 200-day moving average of $277.79.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. The business had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.Automatic Data Processing’s quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities research analysts forecast that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has initiated a stock buyback 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 stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 2.8%. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

Insider Activity

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 shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at approximately $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 through this hyperlink. Also, VP David Kwon sold 900 shares of the business’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president directly owned 11,993 shares in the company, valued at approximately $3,118,180. The trade was a 6.98% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 2,249 shares of company stock valued at $589,852. Insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently made changes to their positions in the stock. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $26,000. Harbor Asset Planning Inc. bought a new position in shares of Automatic Data Processing during the 2nd quarter worth about $26,000. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing in the 3rd quarter valued at about $25,000. Howard Hughes Medical Institute bought a new stake in Automatic Data Processing in the 2nd quarter valued at about $27,000. Finally, Solstein Capital LLC acquired a new position in Automatic Data Processing during the 2nd quarter worth approximately $28,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing News Summary

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

• Positive Sentiment: Q4 / Q2 results and guidance — ADP beat revenue and EPS estimates, showed broad-based growth and margin stability, and set FY26 EPS guidance above street projections; management reiterated an upbeat outlook and a buyback. These execution and capital-allocation signals support the stock’s upward reaction. ADP Q4 Deep Dive
• Positive Sentiment: Earnings call takeaways — summaries and highlights (management tone, buyback, and stronger Employer Services performance) reinforced the beat-and-raise narrative that underpins near-term fundamentals. ADP Earnings Call Highlights
• Neutral Sentiment: New coverage and analyst reports — Cantor Fitzgerald initiated coverage and independent analyst notes (Argus) provide fresh research flow that can increase trading interest but are mixed in directional impact. Coverage Initiated at Cantor Fitzgerald Analyst Report: Automatic Data Processing Inc.
• Negative Sentiment: Multiple price?target cuts and downgrades — Morgan Stanley, Citigroup, JPMorgan, Wells Fargo and Stifel trimmed targets and moved to neutral/underweight/hold stances, signaling reduced analyst conviction and pressuring investor sentiment despite upside still implied by some revised targets. Benzinga coverage of analyst actions
• Negative Sentiment: 52?week low headline — reports that ADP hit a 52?week low attract attention and can trigger short-term selling or defensive positioning by momentum and quant funds. Adp stock hits 52-week low

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.