Automatic Data Processing (NASDAQ:ADP) Given New $275.00 Price Target at JPMorgan Chase & Co.

Automatic Data Processing (NASDAQ:ADP) had its target price decreased by JPMorgan Chase & Co. from $295.00 to $275.00 in a report released on Thursday morning,Benzinga reports. JPMorgan Chase & Co. currently has an underweight rating on the business services provider’s stock.

ADP has been the subject of several other research reports. Stifel Nicolaus lowered 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. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Cantor Fitzgerald started coverage on Automatic Data Processing in a report on Tuesday. They issued an “overweight” rating and a $306.00 target price for the company. Finally, Wells Fargo & Company reduced their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Automatic Data Processing has an average rating of “Hold” and a consensus price target of $295.38.

Automatic Data Processing Stock Down 1.9%

NASDAQ ADP opened at $245.97 on Thursday. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 12 month low of $244.44 and a 12 month high of $329.93. The stock’s 50 day moving average is $258.49 and its 200 day moving average is $278.33. The stock has a market cap of $99.48 billion, a PE ratio of 23.65 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released 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 firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts predict that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Automatic Data Processing declared that its Board of Directors has initiated a share buyback plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to buy up to 5.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction 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 $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP David Kwon sold 806 shares of the business’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president owned 11,187 shares in the company, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,249 shares of company stock valued at $589,852 over the last quarter. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ADP. Mid American Wealth Advisory Group Inc. purchased a new position in shares of Automatic Data Processing during the 2nd quarter valued at approximately $26,000. Harbor Asset Planning Inc. acquired a new position in shares of Automatic Data Processing during the 2nd quarter worth about $26,000. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing during the third quarter valued at approximately $25,000. Howard Hughes Medical Institute acquired a new position in Automatic Data Processing in the 2nd quarter valued at $27,000. Finally, Solstein Capital LLC acquired a new stake in shares of Automatic Data Processing in the second quarter valued at about $28,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

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, 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.