Automatic Data Processing, Inc. (ADP) Stock Analysis
Range Bound setup
Technology · Software - Application
Sell if holding. Analyst target reached at $225.93 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Negative momentum.
ADP provides cloud-based HCM software and outsourcing — payroll, HR, benefits, and talent management — to over 1.1 million clients in 140+ countries and territories. Revenue comes from subscriptions across two segments: Employer Services and PEO (ADP TotalSource, 18,000+... Read more
Sell if holding. Analyst target reached at $225.93 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Negative momentum. Chart setup: RSI 53 mid-range, Bollinger mid-band. Score 5.1/10, moderate confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 46d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
About Automatic Data Processing, Inc.
About Automatic Data Processing, Inc.
ADP's payroll and HCM platform processed pay for over 42 million workers globally in fiscal 2025, spanning more than 1.1 million clients across 140 countries and territories. The company moved more than $3.3 trillion in client funds to employees, tax authorities, and payees during the fiscal year ended June 30, 2025. Two operating segments — Employer Services and the Professional Employer Organization business, ADP TotalSource — serve organizations from single-employee small businesses to large multinational enterprises.
ADP earns recurring subscription revenue from HCM platforms including RUN Powered by ADP (over 940,000 small businesses), ADP Workforce Now (over 90,000 mid-sized and large businesses), and Lyric HCM for large enterprises. The PEO segment co-employs worksite employees for more than 18,000 clients across all 50 U.S. states, generating revenue by assuming employer responsibilities including payroll tax filing and benefit administration for more than 750,000 worksite employees. Additional revenue flows from float income earned on client funds held in transit, retirement services for over 190,000 employer plans, and insurance services for over 260,000 small and mid-sized clients. ADP acquired WorkForce Software in October 2024 and Mexico-based PEI in February 2025 to expand workforce management and local payroll capabilities.
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ADP's regulatory posture spans more than 140 countries and creates meaningful compliance obligations. The company registered its prepaid card business as a provider of prepaid access and registered ADP Trust Bank and ADP Retirement Trust Services with the U.S. Treasury Department's Financial Crimes Enforcement Network under the Bank Secrecy Act of 1970 as amended by the USA PATRIOT Act of 2001. Data processing obligations under the EU General Data Protection Regulation, the California Privacy Rights Act, and the EU Artificial Intelligence Act apply to the company's expanding AI-based tools; any broadening of these regimes may increase costs or require modifications to service delivery.
See also: Technology · Software - Application
From Automatic Data Processing, Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-13Recent Developments — Automatic Data Processing, Inc.
Latest news
- NEWS Jefferies cuts ADP stock price target on valuation concerns - Investing.com — Investing.com negative
- NEWS Why Are ADP (ADP) Shares Soaring Today - StockStory — StockStory positive
- NEWS Automatic Data Processing Inc Stock (ADP) Moved Up by 6.52% on Apr 29: Facts Behind the Movement - TradingKey — TradingKey positive
- NEWS ADP Stock Surges 3.9% Following Strong Q3 Earnings and Updated 2 - GuruFocus — GuruFocus positive
- NEWS ADP (NASDAQ:ADP) Beats Q1 CY2026 Sales Expectations - StockStory — StockStory positive
Generated 2026-06-15T18:11:46Z.
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Rating Breakdown
3 floor-breakers
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $225.93 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Negative momentum. Chart setup: RSI 53 mid-range, Bollinger mid-band. Prior stop was $213.59. Score 5.1/10, moderate confidence.
Take-profit target: $230.61 (+1.9% upside). Prior stop was $213.59. Stop-loss: $213.59.
Analyst target reached - limited upside remaining; Negative momentum; Below 200-MA, MA slope -4.6%/30d (confirmed downtrend).
Automatic Data Processing, Inc. trades at a P/E of 21.1 (forward 18.6). TrendMatrix value score: 5.3/10. Verdict: Sell.
23 analysts cover ADP with a consensus score of 3.3/5. Average price target: $247.
What does Automatic Data Processing, Inc. do?ADP provides cloud-based HCM software and outsourcing — payroll, HR, benefits, and talent management — to over 1.1...
ADP provides cloud-based HCM software and outsourcing — payroll, HR, benefits, and talent management — to over 1.1 million clients in 140+ countries and territories. Revenue comes from subscriptions across two segments: Employer Services and PEO (ADP TotalSource, 18,000+ clients). The company processed pay for 42 million workers and moved $3.3 trillion in client funds in fiscal 2025.