Brokerages Set Automatic Data Processing, Inc. (NASDAQ:ADP) Price Target at $306.42

Automatic Data Processing, Inc. (NASDAQ:ADP) has received a consensus rating of “Hold” from the thirteen brokerages that are covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and two have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $306.4167.

A number of equities analysts have commented on the stock. Citigroup started coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective for the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. JPMorgan Chase & Co. reduced their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. Jefferies Financial Group restated an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, Wells Fargo & Company lowered their price objective on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th.

Automatic Data Processing Stock Down 0.8%

Shares of ADP opened at $257.87 on Friday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market capitalization of $104.30 billion, a price-to-earnings ratio of 25.46 and a beta of 0.86. Automatic Data Processing has a 1 year low of $247.18 and a 1 year high of $329.93. The business’s 50 day simple moving average is $258.30 and its 200-day simple moving average is $279.42.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, beating analysts’ consensus estimates of $2.44 by $0.05. The firm had revenue of $5.18 billion during the quarter, compared to analyst estimates of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. Automatic Data Processing’s revenue for the quarter was up 7.1% compared to the same quarter last year. During the same period last year, the firm posted $2.33 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities analysts expect that Automatic Data Processing will post 9.93 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 Wednesday, April 1st. Investors of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 2.6%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 67.13%.

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

Insiders Place Their Bets

In related news, VP David Kwon sold 900 shares of the business’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the transaction, the vice president owned 11,993 shares in the company, valued at $3,118,180. The trade was a 6.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,249 shares of company stock worth $589,852 in the last quarter. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of large investors have recently added to or reduced their stakes in ADP. Laurel Wealth Advisors LLC boosted its holdings in Automatic Data Processing by 30,110.7% in the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after acquiring an additional 4,653,304 shares in the last quarter. Norges Bank purchased a new position in shares of Automatic Data Processing in the 2nd quarter valued at approximately $696,841,000. Wellington Management Group LLP boosted its stake in Automatic Data Processing by 47.8% in the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in Automatic Data Processing by 32.1% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider’s stock worth $960,831,000 after purchasing an additional 796,379 shares during the last quarter. Finally, Amundi grew its position in Automatic Data Processing by 24.9% during the 2nd quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock worth $948,549,000 after purchasing an additional 619,829 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

About Automatic Data Processing

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.