Automatic Data Processing (NASDAQ:ADP) Given New $265.00 Price Target at Citigroup

Automatic Data Processing (NASDAQ:ADP) had its price objective trimmed by Citigroup from $303.00 to $265.00 in a report issued on Thursday,Benzinga reports. The firm currently has a neutral rating on the business services provider’s stock.

Several other research firms have also recently weighed in on ADP. Stifel Nicolaus lowered their target price on Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating on the stock in a research note on Thursday. Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research report on Thursday. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday. They set an “overweight” rating and a $306.00 target price for the company. Finally, JPMorgan Chase & Co. dropped 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 research note on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $295.38.

Automatic Data Processing Trading Down 1.9%

NASDAQ ADP opened at $245.97 on Thursday. The firm’s 50 day moving average price is $258.49 and its two-hundred day moving average price is $278.33. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.03. Automatic Data Processing has a twelve month low of $244.44 and a twelve month high of $329.93. The stock has a market cap of $99.48 billion, a price-to-earnings ratio of 23.65 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations 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 revenue was up 6.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities analysts anticipate that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.8%. Automatic Data Processing’s payout ratio is currently 67.13%.

Automatic Data Processing announced that its board has initiated a stock 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 buy up to 5.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 900 shares of the stock in a transaction that occurred 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 transaction, the vice president owned 11,993 shares in the company, valued at $3,118,180. This trade represents a 6.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, 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 completion of the transaction, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 2,249 shares of company stock worth $589,852. 0.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ADP. Brighton Jones LLC boosted its stake in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after purchasing an additional 4,808 shares during the period. Bison Wealth LLC lifted its holdings in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock worth $1,073,000 after buying an additional 681 shares during the last quarter. Cooper Financial Group boosted its position in shares of Automatic Data Processing by 16.2% in the second quarter. Cooper Financial Group now owns 1,412 shares of the business services provider’s stock valued at $436,000 after acquiring an additional 197 shares during the period. Trilogy Capital Inc. acquired a new stake in shares of Automatic Data Processing in the second quarter worth $230,000. Finally, First Pacific Financial increased its position in Automatic Data Processing by 124.9% during the second quarter. First Pacific Financial now owns 848 shares of the business services provider’s stock worth $262,000 after acquiring an additional 471 shares during the period. Institutional investors 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: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue ~$5.36B, with revenue up ~6% YoY; management lifted revenue outlook. PR Newswire: ADP Q2 Results
• Positive Sentiment: Large $6 billion share buyback remains a near-term support catalyst by reducing share count and signaling management confidence. MarketBeat: Buyback Article
• Positive Sentiment: Product/innovation push — ADP launched new AI “ADP Assist” agents aimed at improving payroll/HR automation, which supports long-term revenue and margin expansion potential. PR Newswire: ADP AI Launch
• Neutral Sentiment: New coverage initiated at Cantor Fitzgerald — adds another sell-side voice but not yet a material catalyst. AmericanBankingNews: Coverage Initiated
• Negative Sentiment: Morgan Stanley lowered its price target from $311 to $274 and moved to an “equal weight” rating — one of several same‑day cuts pressuring the stock. Benzinga: Morgan Stanley PT Cut
• Negative Sentiment: Citigroup cut its target from $303 to $265 and set a “neutral” rating — another immediate headwind for sentiment. Benzinga: Citigroup PT Cut
• Negative Sentiment: JPMorgan trimmed its target from $295 to $275 and holds an “underweight” stance — contributing to the selloff. Benzinga: JPMorgan PT Cut
• Negative Sentiment: Wells Fargo reduced its target to $262 and kept an “underweight” rating. Benzinga: Wells Fargo PT Cut TickerReport: Wells Fargo Note
• Negative Sentiment: Stifel trimmed its target from $290 to $280 and moved to a “hold” — part of a cluster of downgrades weighing on investor outlook. Benzinga: Stifel PT Cut

About Automatic Data Processing

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.