Automatic Data Processing stock gains 3.1 percent as valuation gap draws investor interest
Published on 09/15/2026 at 16:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Automatic Data Processing Inc. stock (ISIN US0530151036) finished the Nasdaq session on September 14, 2026 at USD 276.63, up 3.1 percent from the prior close, marking a notable gain against a weaker broad market backdrop. As Ad-hoc-news reported on September 15, 2026, the move left the shares clearly outperforming the S&P 500 and the Nasdaq Composite in the last completed session.
Stock climbs while remaining below fair-value estimates
Per data cited by Ad-hoc-news on September 15, 2026, Automatic Data Processing Inc. (Nasdaq: ADP) closed at USD 276.63 on September 14, 2026 at 4:00 p.m. ET, having traded within a normal intraday range with the day high above and the day low below the closing level.
According to a same-day valuation overview on GuruFocus dated September 14, 2026, the USD 276.63 share price remained about 9.9 percent below a GF Value estimate of USD 306.92, suggesting that the stock was still trading at a discount to an intrinsic-value model despite the latest advance.
The same GuruFocus analysis attributed a GF Score of 98 out of 100 to ADP, highlighting strong profitability and growth metrics and framing the company as fundamentally solid even as some caution persists around financial strength and valuation indicators.
Latest quarterly figures show mid-single-digit revenue growth
Beyond the recent price move, investors are still digesting ADP's latest reported results. According to MarketBeat on September 15, 2026, Automatic Data Processing last released quarterly earnings on July 29, 2026, reporting earnings per share of USD 2.64 for the period.
In that same quarter, revenue reached USD 5.47 billion, compared with analyst expectations of USD 5.44 billion, meaning ADP beat the consensus by USD 30 million and delivered approximately 6.8 percent year-over-year revenue growth from USD 5.12 billion in the comparable quarter a year earlier, as outlined by MarketBeat.
MarketBeat noted that ADP's net margin for the July 29, 2026 quarter stood at 20.11 percent, with return on equity at 71.34 percent, underscoring the company's ability to convert a substantial portion of its service revenue into bottom-line profit while maintaining high capital efficiency.
The same report indicated that equities analysts as a group currently forecast full-year fiscal 2027 earnings per share of around USD 12.26, falling within a company guidance range of USD 12.12 to USD 12.34 per share for that fiscal year, which supports expectations for continued earnings growth.
Analyst consensus points to limited upside from current levels
On the analyst side, fresh commentary suggests that most houses now view ADP as fairly valued to slightly undervalued following the recent climb. As The Globe and Mail reported on September 15, 2026, Citi analyst Bryan Keane maintained a Hold rating on Automatic Data Processing and set a price target of USD 287.00 after the stock closed at USD 268.26 the preceding trading day referenced in that note.
The same Globe and Mail piece, drawing on TipRanks data, stated that the average analyst price target for ADP stands at USD 286.14, implying roughly 7.6 percent upside from recent price levels, and noted that UBS also assigns a Hold rating with a USD 290.00 target, reinforcing a broadly cautious stance despite the company's solid fundamentals.
Additional data presented by Yahoo Finance on September 15, 2026 shows an analyst target range for ADP stock between USD 225.00 on the low end and USD 322.00 on the high end, with an average target of USD 287.60 and a current price reference of USD 276.63, again pointing to mid-single-digit percentage upside based on consensus.
In parallel, a stock-grading overview on Barrons dated September 15, 2026 shows ADP carrying a Stock Grader rating of 58.04 classified as Hold, having been downgraded from Buy on August 4, 2026, with commentary that the company's fundamentals look average with room for improvement despite a positive sentiment score.
Investor positioning and upcoming dividend add to the picture
Institutional positioning also plays into the current narrative around ADP stock. The same September 15, 2026 alert from MarketBeat highlighted that Bank of America Corp DE disclosed ownership of 5,497,545 shares of Automatic Data Processing, underscoring continued interest from large financial institutions in the payroll and human-capital management specialist.
MarketBeat further reported that ADP recently declared a quarterly dividend of USD 1.70 per share, payable on October 1, 2026 to shareholders of record as of September 11, 2026, corresponding to an annualized dividend of USD 6.80 and a yield of roughly 2.5 percent at recent price levels, with a dividend payout ratio of 62.16 percent.
For many investors, that combination of steady dividend income, high return on equity and mid-single-digit revenue growth supports the case for holding ADP as a core position, even if near-term price targets suggest more limited upside after the recent rise.
ADP stock holds its ground above recent support
From a trading perspective, the Nasdaq close at USD 276.63 on September 14, 2026 represented an 8.37-point increase on the day, equivalent to the 3.12 percent gain noted by Yahoo Finance, and kept the stock comfortably within its established 52-week range, which financial portals report spans significantly lower and higher levels over the past year.
At the same time, GuruFocus calculated that the USD 276.63 price on September 14, 2026 sat 9.9 percent below its GF Value estimate of USD 306.92, so investors who believe in that intrinsic-value model still see room for appreciation if ADP continues to deliver revenue growth near the recent 6.8 percent rate and maintains net margins around 20.11 percent.
As of the latest available Nasdaq data for September 14, 2026, ADP shares traded with volume close to recent averages, suggesting that the 3.1 percent move reflected steady buying rather than a short-lived spike, which may help support the stock around current levels in the coming sessions.
Closing price and key figures
Automatic Data Processing stock closed at USD 276.63 on the Nasdaq on September 14, 2026, up 3.1 percent from the prior close, with the move leaving the shares approximately 9.9 percent below a GF Value estimate of USD 306.92 as highlighted by GuruFocus. This places the stock in a zone where analysts, on average, expect roughly 7.6 percent further upside based on a consensus target near USD 286, while recent quarterly results showed revenue rising 6.8 percent year over year to USD 5.47 billion and earnings per share coming in at USD 2.64.
Automatic Data Processing stock - key data
- Company: Automatic Data Processing Inc.
- ISIN: US0530151036
- Ticker: ADP
- Trading venue: Nasdaq
- Price (as of September 14, 2026, 16:00): 276.63 USD
- Market capitalization: 114,000,000,000 USD (as of September 14, 2026)
- Sector / Industry: Industrials / Business Services
- Index membership: S&P 500
- Next earnings date: October 30, 2026
