Automatic Data Processing, Inc. (NASDAQ:ADP) Receives $254.40 Average PT from Analysts

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have been given an average rating of “Hold” by the sixteen brokerages that are presently covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation, three have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $253.50.

Several brokerages have recently weighed in on ADP. Guggenheim began coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 target price on the stock. Cantor Fitzgerald lowered their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating on the stock in a report on Wednesday, April 29th. Stifel Nicolaus lowered their target price on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Wells Fargo & Company lowered their target price on shares of Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a report on Friday, March 27th. Finally, Citigroup decreased their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a report on Thursday, April 30th.

Insider Buying and Selling

In related news, VP Christopher D’ambrosio sold 543 shares of the business’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 sale, the vice president owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Institutional investors have recently added to or reduced their stakes in the stock. Imprint Wealth LLC purchased a new stake in Automatic Data Processing during the third quarter worth about $25,000. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing during the third quarter worth about $28,000. Cloud Capital Management LLC purchased a new stake in Automatic Data Processing during the third quarter worth about $29,000. Cornerstone Financial Management LLC purchased a new stake in Automatic Data Processing during the fourth quarter worth about $26,000. Finally, Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing during the third quarter worth about $32,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $212.99 on Friday. The company’s fifty day moving average price is $206.79 and its 200 day moving average price is $236.48. Automatic Data Processing has a 12 month low of $188.16 and a 12 month high of $329.93. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a market capitalization of $85.14 billion, a P/E ratio of 19.87 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating the consensus estimate of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The business’s quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, sell-side analysts predict that Automatic Data Processing will post 11.06 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.2%. Automatic Data Processing’s payout ratio is currently 63.43%.

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

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.