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

Automatic Data Processing, Inc. (NASDAQ:ADP) has earned an average recommendation of “Hold” from the seven analysts that are currently covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company. The average 1-year target price among analysts that have covered the stock in the last year is $249.57.

Several analysts recently weighed in on ADP shares. Jefferies Financial Group increased their target price on Automatic Data Processing from $240.00 to $260.00 in a research note on Wednesday, July 26th. Royal Bank of Canada initiated coverage on Automatic Data Processing in a report on Tuesday. They issued a “sector perform” rating and a $267.00 target price for the company. Robert W. Baird increased their target price on Automatic Data Processing from $235.00 to $270.00 in a report on Thursday, July 27th. Mizuho raised their price target on Automatic Data Processing from $255.00 to $285.00 and gave the company a “buy” rating in a report on Thursday, August 17th. Finally, Morgan Stanley raised their price target on Automatic Data Processing from $240.00 to $260.00 in a report on Thursday, July 27th.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $250.12 on Friday. The firm has a market cap of $103.05 billion, a P/E ratio of 30.50, a PEG ratio of 2.37 and a beta of 0.81. The stock’s 50-day moving average is $242.98 and its two-hundred day moving average is $225.78. Automatic Data Processing has a fifty-two week low of $201.46 and a fifty-two week high of $274.92. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.99 and a quick ratio of 0.99.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, July 26th. The business services provider reported $1.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.83 by $0.06. Automatic Data Processing had a return on equity of 107.15% and a net margin of 18.94%. The company had revenue of $4.48 billion during the quarter, compared to the consensus estimate of $4.39 billion. During the same quarter in the prior year, the company posted $1.50 EPS. The firm’s revenue was up 8.5% on a year-over-year basis. Analysts predict that Automatic Data Processing will post 9.14 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Sunday, October 1st. Stockholders of record on Friday, September 8th will be given a $1.25 dividend. The ex-dividend date is Thursday, September 7th. This represents a $5.00 annualized dividend and a dividend yield of 2.00%. Automatic Data Processing’s dividend payout ratio is currently 60.98%.

Insiders Place Their Bets

In other Automatic Data Processing news, CEO Maria Black sold 17,326 shares of Automatic Data Processing stock in a transaction dated Friday, September 1st. The stock was sold at an average price of $255.03, for a total transaction of $4,418,649.78. Following the transaction, the chief executive officer now directly owns 70,782 shares in the company, valued at $18,051,533.46. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other Automatic Data Processing news, CEO Maria Black sold 17,326 shares of Automatic Data Processing stock in a transaction dated Friday, September 1st. The stock was sold at an average price of $255.03, for a total transaction of $4,418,649.78. Following the transaction, the chief executive officer now directly owns 70,782 shares in the company, valued at $18,051,533.46. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Don Mcguire sold 3,880 shares of Automatic Data Processing stock in a transaction dated Tuesday, September 5th. The stock was sold at an average price of $253.90, for a total value of $985,132.00. Following the transaction, the vice president now owns 20,665 shares in the company, valued at $5,246,843.50. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 58,971 shares of company stock worth $15,023,007. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bank of New Hampshire raised its stake in shares of Automatic Data Processing by 0.3% in the 2nd quarter. Bank of New Hampshire now owns 13,356 shares of the business services provider’s stock valued at $2,936,000 after purchasing an additional 40 shares during the period. Key Financial Inc raised its stake in shares of Automatic Data Processing by 0.4% in the 2nd quarter. Key Financial Inc now owns 10,731 shares of the business services provider’s stock valued at $2,359,000 after purchasing an additional 41 shares during the period. Bell Investment Advisors Inc raised its stake in shares of Automatic Data Processing by 23.2% in the 2nd quarter. Bell Investment Advisors Inc now owns 218 shares of the business services provider’s stock valued at $48,000 after purchasing an additional 41 shares during the period. Angeles Wealth Management LLC raised its stake in shares of Automatic Data Processing by 4.2% in the 2nd quarter. Angeles Wealth Management LLC now owns 1,011 shares of the business services provider’s stock valued at $222,000 after purchasing an additional 41 shares during the period. Finally, Signet Financial Management LLC increased its position in shares of Automatic Data Processing by 1.3% in the fourth quarter. Signet Financial Management LLC now owns 3,587 shares of the business services provider’s stock valued at $857,000 after acquiring an additional 45 shares during the last quarter. Institutional investors and hedge funds own 79.37% 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.