Automatic Data Processing (NASDAQ:ADP) Coverage Initiated by Analysts at Guggenheim

Guggenheim started coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a research note issued on Thursday, Marketbeat reports. The brokerage set a “buy” rating and a $270.00 price target on the business services provider’s stock. Guggenheim’s price objective would suggest a potential upside of 29.63% from the company’s previous close.

Several other research firms have also recently issued reports on ADP. JPMorgan Chase & Co. cut their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective on the stock. Stifel Nicolaus dropped their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research note on Monday, February 9th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Citigroup reduced their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus target price of $288.46.

Automatic Data Processing Trading Down 0.7%

NASDAQ:ADP opened at $208.28 on Thursday. The company has a fifty day moving average of $231.53 and a 200 day moving average of $257.95. Automatic Data Processing has a 52 week low of $203.26 and a 52 week high of $329.93. 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 firm has a market capitalization of $83.86 billion, a P/E ratio of 20.03 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter last year, the firm earned $2.35 EPS. The company’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, research analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing declared that its board has authorized a share repurchase program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. This trade represents a 2.37% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 4,058 shares of company stock worth $1,000,263. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of institutional investors have recently modified their holdings of ADP. PGIM Custom Harvest LLC boosted its position in Automatic Data Processing by 4.9% in the 2nd quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock worth $223,000 after purchasing an additional 34 shares in the last quarter. Heritage Wealth Management Inc. lifted its holdings in Automatic Data Processing by 1.1% in the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock valued at $1,030,000 after purchasing an additional 35 shares in the last quarter. Fairvoy Private Wealth LLC boosted its stake in Automatic Data Processing by 4.2% during the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock worth $253,000 after purchasing an additional 35 shares during the last quarter. Wealthspire Advisors LLC raised its position in shares of Automatic Data Processing by 0.4% in the second quarter. Wealthspire Advisors LLC now owns 9,335 shares of the business services provider’s stock valued at $2,879,000 after buying an additional 36 shares during the last quarter. Finally, Central Pacific Bank Trust Division lifted its stake in shares of Automatic Data Processing by 4.3% in the third quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider’s stock worth $261,000 after buying an additional 37 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.