Automatic Data Processing (ADP)
Industrials7 articles
Price chart
Why is ADP moving today?
+1.9%ADP is +1.9% today, inside the ordinary range for a session (under 3%). No stories about it reached the feed in the last 24 hours.
What this does not prove. A story on the same day is evidence of timing, not of cause: it explains a move only if it accounts for the size and the direction, and most single-stock moves carry a sector or index component too. Nothing here is a forecast.
Source: Yahoo Finance - quote as of 14 hours ago
Automatic Data Processing (ADP) overview
Automatic Data Processing is a leading provider of payroll and human-capital-management services.
ADP is a member of the S&P 500. It sits in the Industrials sector. That sector covers manufacturers, aerospace, defense and transport companies tied to economic activity.
Automatic Data Processing trades on the NasdaqGS under the ticker symbol ADP. The most recent market data puts the share price at about $285.65. That is up 1.90% on the session. At that price the company is worth roughly $113.19B.
Over the past 52 weeks, ADP has traded between $188.16 and $289.80. Shares change hands at a trailing price-to-earnings (P/E) ratio of about 26.1. The P/E ratio sets the share price against a year of earnings. A higher number means the market is paying more for each dollar the company earns. ADP also pays a dividend. It yields around 2.38% at the current price.
Key statistics
Source: Yahoo Finance - quote as of 14 hours ago
Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.
Why investors watch ADP
ADP is one of the larger names in the Industrials sector, so investors follow it closely. It tends to move with the rest of the sector. This page sums up each ADP story as it breaks, and tags it bullish, bearish or neutral.
Size matters here as well. The S&P 500 is weighted by market value. ADP is large enough that its own share price nudges the whole index. So it is worth watching even for investors who only hold index funds.
What moves ADP
- Earnings. ADP reports results four times a year. A surprise against the estimate tends to move the stock that day.
- Analyst calls. Upgrades, downgrades and new price targets change what the market expects from ADP.
- Sector news. Industrials stocks often move together, so a rival's news can move ADP too.
- Index weight. ADP is big enough to move the S&P 500 on its own.
Market Mood
Latest ADP news
Job Changers See 4.7% Pay Increase, Stayers at 3% in August
In August, base pay for job changers in the private sector rose 4.7%, compared to a 3% increase for job stayers, according to ADP. Gross pay for job changers increased by 7.3% year over year, while job stayers saw a 4.4% rise. The median pay increase for job switchers reached 5% last month, up from 4.4% in July. These trends indicate that switching jobs may offer significant pay benefits, particularly as nearly 70% of HR professionals face challenges in filling positions, impacting overall wage dynamics.
Read More: Job Changers See 4.7% Pay Increase, Stayers at 3% in August
ADP Raises Quarterly Dividend to $1.70 on $5.4B Operating Cash Flow
ADP has increased its quarterly dividend from $1.54 to $1.70, supported by $5.4 billion in operating cash flow. This increase is significant given the Consumer Price Index stands at 334.1 with a recent monthly uptick of 0.4%. Additionally, Lowe's (LOW) and Texas Instruments (TXN) also raised their dividends, with Lowe's moving from $1.20 to $1.25 and Texas Instruments from $1.36 to $1.42. These steps matter for investors as a rising dividend can help defend against inflation and preserve purchasing power.
Read More: ADP Raises Quarterly Dividend to $1.70 on $5.4B Operating Cash Flow
ADP (NASDAQ: ADP) Reports 92.1% Client Retention and Q3 Growth
ADP (NASDAQ: ADP) achieved a record 92.1% client retention in FY26 and a 7% increase in Employer Services revenue during Q3 FY26, with segment margins expanding by 130 basis points to 41.1%. The company generated $403.9 million in interest income from client payroll funds, a 14% year-over-year increase, with average client balances of $48.3 billion. Full-year FY26 client fund interest guidance was raised to between $1.340 billion and $1.350 billion. ADP's long history of dividend increases, now over 50 years, bolsters its reputation as a reliable investment.
Read More: ADP (NASDAQ: ADP) Reports 92.1% Client Retention and Q3 Growth
S&P 500 (SPY) closes above 7600, major indexes reach record highs
On Tuesday, the S&P 500 (SPY) rose 0.13% to close above 7,600 for the first time, while the Dow added 228.91 points, or 0.45%. The Nasdaq Composite edged up 0.03%. This marks new record closes for all three major indexes. Additionally, the ADP private payrolls report is anticipated on Wednesday, along with reports on durable goods and factory orders for April, which may influence market sentiment moving forward.
Read More: S&P 500 (SPY) closes above 7600, major indexes reach record highs
General Dynamics (GD), ADP Gain Pre-Market; SoFi Technologies (SOFI) Drops
General Dynamics (GD) and ADP both saw pre-market gains, reflecting positive investor sentiment and potential growth in their sectors. In contrast, SoFi Technologies (SOFI) experienced a decline in pre-market trading, indicating challenges the company may face in maintaining investor confidence. The movements in these stocks can signal varying trends in market sectors, particularly in defense and employment-related industries. The divergence among these stocks could impact investor strategies moving forward.
Read More: General Dynamics (GD), ADP Gain Pre-Market; SoFi Technologies (SOFI) Drops
ADP Maintains Buy Rating with $270 Price Target Amid Growth Potential
On April 20, Guggenheim maintained a Buy rating for Automatic Data Processing, Inc. (ADP) with a price target of $270. They argue that the market is underestimating ADP's growth potential, particularly with its enterprise human capital management tool, Lyric. Guggenheim's analysis highlights Lyric's effectiveness in complex payroll environments and its ability to work alongside existing systems like Workday and SAP. ADP is expected to release its fiscal Q3 2026 earnings on April 29, with projected revenue of approximately $5.85 billion and a GAAP EPS estimate of $3.30.
Read More: ADP Maintains Buy Rating with $270 Price Target Amid Growth Potential
ADP Reports 62,000 Job Growth for Private Sector in March 2023
Private sector hiring increased by 62,000 in March 2023, exceeding Dow Jones' estimate of 39,000. This figure is only 4,000 lower than February's revised total. Education and health services contributed 58,000 jobs, while construction added 30,000. Conversely, trade, transportation, and utilities saw a loss of 58,000 jobs. Additionally, wage growth held steady at 4.5% for job stayers and increased to 6.6% for job changers.
Read More: ADP Reports 62,000 Job Growth for Private Sector in March 2023More Industrials stocks
Frequently asked questions
Is Automatic Data Processing in the S&P 500?
Yes. Automatic Data Processing trades as ADP and is a member of the S&P 500. The index lists it in the Industrials sector.
What sector is ADP in?
ADP sits in the Industrials sector of the S&P 500.
Where can I find the latest ADP news?
Right here. This page collects recent ADP news and market analysis. Every story gets an AI summary and a bullish, bearish or neutral tag.
What is Automatic Data Processing's stock price?
ADP last traded at about $285.65. Prices move all through the session, so this is the latest quote rather than a live one.
What is Automatic Data Processing's market cap?
ADP is worth roughly $113.19B. Market cap is the share price times the number of shares outstanding.
What is ADP's P/E ratio?
ADP trades at a trailing P/E ratio of about 26.1. The ratio compares the share price with earnings per share over the past year.