Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Average Recommendation of “Hold” from Brokerages

Automatic Data Processing, Inc. (NASDAQ:ADP) has been given a consensus rating of “Hold” by the eleven analysts that are presently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and two have given a buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $289.91.

A number of research analysts have recently issued reports on the stock. UBS Group lifted their price objective on shares of Automatic Data Processing from $270.00 to $295.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 22nd. Royal Bank of Canada boosted their target price on Automatic Data Processing from $267.00 to $315.00 and gave the stock a “sector perform” rating in a research note on Thursday, October 31st. Barclays increased their price target on Automatic Data Processing from $310.00 to $325.00 and gave the company an “overweight” rating in a research note on Monday, November 4th. TD Cowen upped their price objective on shares of Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a report on Friday, November 1st. Finally, StockNews.com upgraded shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a research note on Sunday.

Automatic Data Processing Trading Down 0.0 %

NASDAQ:ADP opened at $296.18 on Monday. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.01 and a current ratio of 1.01. The firm has a 50-day simple moving average of $297.90 and a 200-day simple moving average of $280.29. Automatic Data Processing has a one year low of $231.27 and a one year high of $309.63. The firm has a market cap of $120.68 billion, a P/E ratio of 31.61, a P/E/G ratio of 3.34 and a beta of 0.79.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, October 30th. The business services provider reported $2.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.21 by $0.12. The business had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.77 billion. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. The business’s revenue was up 7.1% compared to the same quarter last year. During the same period last year, the business posted $2.08 EPS. Equities analysts anticipate that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be given a $1.54 dividend. The ex-dividend date of this dividend is Friday, March 14th. This represents a $6.16 annualized dividend and a yield of 2.08%. Automatic Data Processing’s dividend payout ratio is presently 65.74%.

Insider Activity

In other Automatic Data Processing news, VP Sreenivasa Kutam sold 38,975 shares of the firm’s stock in a transaction that occurred on Wednesday, November 6th. The stock was sold at an average price of $300.00, for a total value of $11,692,500.00. Following the sale, the vice president now directly owns 32,604 shares of the company’s stock, valued at approximately $9,781,200. This trade represents a 54.45 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 362 shares of the business’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $293.83, for a total transaction of $106,366.46. Following the completion of the sale, the vice president now directly owns 13,706 shares of the company’s stock, valued at approximately $4,027,233.98. The trade was a 2.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 42,129 shares of company stock valued at $12,604,872 in the last three months. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ADP. Federated Hermes Inc. increased its holdings in Automatic Data Processing by 0.4% during the 2nd quarter. Federated Hermes Inc. now owns 92,324 shares of the business services provider’s stock worth $22,037,000 after purchasing an additional 365 shares during the period. Parallel Advisors LLC lifted its stake in Automatic Data Processing by 2.7% in the second quarter. Parallel Advisors LLC now owns 8,071 shares of the business services provider’s stock worth $1,927,000 after acquiring an additional 216 shares during the last quarter. Thoroughbred Financial Services LLC grew its holdings in Automatic Data Processing by 34.2% during the 2nd quarter. Thoroughbred Financial Services LLC now owns 8,885 shares of the business services provider’s stock worth $2,120,000 after acquiring an additional 2,265 shares in the last quarter. Wealthspire Advisors LLC raised its holdings in shares of Automatic Data Processing by 46.0% in the 2nd quarter. Wealthspire Advisors LLC now owns 9,720 shares of the business services provider’s stock valued at $2,320,000 after purchasing an additional 3,063 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. lifted its position in shares of Automatic Data Processing by 0.8% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 15,426 shares of the business services provider’s stock worth $3,682,000 after purchasing an additional 130 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.