Wells Fargo & Company Has Lowered Expectations for Automatic Data Processing (NASDAQ:ADP) Stock Price

Automatic Data Processing (NASDAQ:ADP) had its price objective reduced by analysts at Wells Fargo & Company from $262.00 to $214.00 in a report issued on Friday,Benzinga reports. The firm presently has an “underweight” rating on the business services provider’s stock. Wells Fargo & Company‘s target price indicates a potential upside of 6.34% from the company’s previous close.

Several other brokerages have also recently issued reports on ADP. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Stifel Nicolaus cut 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 note on Monday, February 9th. Guggenheim initiated coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 target price on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Finally, Citigroup lowered 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. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Automatic Data Processing presently has an average rating of “Hold” and a consensus target price of $284.77.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $201.25 on Friday. Automatic Data Processing has a 52 week low of $198.59 and a 52 week high of $329.93. The company has a fifty day simple moving average of $223.75 and a two-hundred day simple moving average of $253.38. 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 company has a market cap of $81.03 billion, a price-to-earnings ratio of 19.35 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion for 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%.The company’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period last year, the firm 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 analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing declared that its board has approved a share 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 reacquire 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.

Insiders Place Their Bets

In related news, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was 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 in the company, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the transaction, the vice president directly owned 8,912 shares of the company’s stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,058 shares of company stock worth $1,000,263 over the last 90 days. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ADP. Exchange Traded Concepts LLC increased its position in Automatic Data Processing by 141.5% during the third quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider’s stock worth $3,899,000 after buying an additional 7,782 shares during the period. Mitchell Capital Management Co. boosted its holdings in shares of Automatic Data Processing by 325.0% in the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider’s stock valued at $1,996,000 after acquiring an additional 5,200 shares during the period. Atlantic Union Bankshares Corp boosted its holdings in shares of Automatic Data Processing by 136.0% in the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider’s stock valued at $14,080,000 after acquiring an additional 27,644 shares during the period. CIBC Asset Management Inc grew its position in shares of Automatic Data Processing by 2.6% during the third quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock worth $53,875,000 after acquiring an additional 4,720 shares during the last quarter. Finally, Thrivent Financial for Lutherans grew its position in shares of Automatic Data Processing by 18.4% during the third quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider’s stock worth $40,566,000 after acquiring an additional 21,444 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.