Automatic Data Processing (NASDAQ:ADP) Upgraded at Guggenheim

Guggenheim upgraded shares of Automatic Data Processing (NASDAQ:ADP) to a strong-buy rating in a research report report published on Wednesday morning,Zacks.com reports.

A number of other research analysts have also issued reports on ADP. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Citigroup cut their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective for the company. Wells Fargo & Company decreased 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 report on Thursday, January 29th. Finally, Stifel Nicolaus dropped their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $288.46.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $208.72 on Wednesday. The firm has a market cap of $84.04 billion, a PE ratio of 20.07 and a beta of 0.86. Automatic Data Processing has a twelve month low of $203.26 and a twelve month high of $329.93. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The business has a 50-day moving average price of $229.28 and a 200 day moving average price of $256.96.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the business posted $2.35 earnings per share. Automatic Data Processing’s revenue for the quarter 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. Sell-side analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has approved a stock buyback program on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors 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 dividend yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is presently 65.38%.

Insider Transactions at Automatic Data Processing

In other news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction on 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 $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction dated 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 sale, the vice president owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 4,058 shares of company stock valued at $1,000,263 in the last 90 days. 0.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently bought and sold shares of the business. Imprint Wealth LLC acquired a new stake in Automatic Data Processing in the 3rd quarter valued at about $25,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing in the 2nd quarter worth approximately $27,000. TruNorth Capital Management LLC acquired a new position in shares of Automatic Data Processing during the 3rd quarter worth approximately $28,000. Cloud Capital Management LLC acquired a new position in shares of Automatic Data Processing during the 3rd quarter worth approximately $29,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Automatic Data Processing in the fourth quarter valued at approximately $26,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: Guggenheim initiated coverage of ADP with a Buy / Strong‑Buy rating and a $270 price target (roughly ~29% upside from recent levels); the firm argued AI fears are premature and flagged ADP’s durable cash flows and dividend profile as positives. Guggenheim initiates coverage of Automatic Data Processing (ADP) with buy recommendation Guggenheim Initiates ADP as Buy, Says Fears around AI Are Premature Zacks summary
• Neutral Sentiment: ADP was highlighted in dividend-stock writeups (InsiderMonkey / other outlets) emphasizing its ~3%+ yield and steady income characteristics — supports longer-term investor interest but is not an immediate catalyst. 5 Dividend Stocks to Buy for Steady Income
• Neutral Sentiment: Published short‑interest data in feeds shows a large March “increase,” but the print is internally inconsistent (zeros/NaN). This appears to be a data error and shouldn’t be treated as a genuine short‑squeeze signal without corrected filings.
• Negative Sentiment: MarketWatch noted ADP underperformed peers recently despite some daily gains, a reminder that positive analyst notes don’t always produce immediate outperformance — investors may be taking profits or reacting to broader market/sector pressure. Automatic Data Processing Inc. stock underperforms

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.