Automatic Data Processing (NASDAQ:ADP) has been assigned an average recommendation of “Hold” from the sixteen research firms that are presently covering the firm, Marketbeat Ratings reports. Ten analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $186.20.

A number of research firms have issued reports on ADP. ValuEngine upgraded shares of Automatic Data Processing from a “sell” rating to a “hold” rating in a report on Tuesday, December 3rd. Credit Suisse Group reiterated a “buy” rating and set a $190.00 target price on shares of Automatic Data Processing in a report on Sunday, February 2nd. Morgan Stanley increased their target price on shares of Automatic Data Processing from $174.00 to $180.00 and gave the stock an “equal weight” rating in a report on Thursday, January 23rd. Citigroup increased their target price on shares of Automatic Data Processing from $170.00 to $185.00 and gave the stock a “neutral” rating in a report on Tuesday, January 14th. Finally, Wolfe Research lowered shares of Automatic Data Processing from an “outperform” rating to a “market perform” rating in a report on Thursday, October 31st.

In other news, VP Don Mcguire sold 326 shares of the firm’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $172.07, for a total value of $56,094.82. Following the sale, the vice president now directly owns 6,916 shares in the company, valued at approximately $1,190,036.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP John Ayala sold 6,484 shares of the firm’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $176.03, for a total transaction of $1,141,378.52. Following the completion of the sale, the vice president now owns 19,578 shares in the company, valued at $3,446,315.34. The disclosure for this sale can be found here. Insiders sold a total of 14,528 shares of company stock worth $2,556,051 over the last 90 days. Company insiders own 0.31% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in ADP. BlackRock Inc. raised its stake in Automatic Data Processing by 1.2% during the 2nd quarter. BlackRock Inc. now owns 30,955,650 shares of the business services provider’s stock worth $5,117,899,000 after acquiring an additional 368,108 shares in the last quarter. State Street Corp grew its position in Automatic Data Processing by 1.0% during the 4th quarter. State Street Corp now owns 19,346,773 shares of the business services provider’s stock worth $3,315,953,000 after purchasing an additional 194,250 shares during the last quarter. Bank of New York Mellon Corp grew its position in Automatic Data Processing by 2.4% during the 4th quarter. Bank of New York Mellon Corp now owns 9,928,383 shares of the business services provider’s stock worth $1,692,788,000 after purchasing an additional 228,698 shares during the last quarter. Polen Capital Management LLC grew its position in Automatic Data Processing by 3.6% during the 4th quarter. Polen Capital Management LLC now owns 5,051,703 shares of the business services provider’s stock worth $861,315,000 after purchasing an additional 173,544 shares during the last quarter. Finally, UBS Asset Management Americas Inc. grew its position in Automatic Data Processing by 7.5% during the 4th quarter. UBS Asset Management Americas Inc. now owns 3,749,868 shares of the business services provider’s stock worth $639,352,000 after purchasing an additional 261,315 shares during the last quarter. Institutional investors and hedge funds own 80.12% of the company’s stock.

Automatic Data Processing stock traded up $1.14 during mid-day trading on Friday, reaching $181.25. 1,566,513 shares of the company’s stock were exchanged, compared to its average volume of 1,985,642. The company has a market cap of $78.26 billion, a P/E ratio of 32.02, a P/E/G ratio of 2.24 and a beta of 0.87. Automatic Data Processing has a twelve month low of $148.15 and a twelve month high of $181.28. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.25. The company has a fifty day moving average of $173.88 and a 200-day moving average of $167.61.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 29th. The business services provider reported $1.52 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.44 by $0.08. The company had revenue of $3.67 billion for the quarter, compared to analyst estimates of $3.69 billion. Automatic Data Processing had a net margin of 16.97% and a return on equity of 46.96%. The firm’s quarterly revenue was up 5.1% on a year-over-year basis. During the same period in the prior year, the business earned $1.34 EPS. Equities research analysts expect that Automatic Data Processing will post 6.17 earnings per share for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has authorized a share buyback plan on Tuesday, November 12th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the business services provider to repurchase up to 6.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $0.91 dividend. The ex-dividend date is Thursday, March 12th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 2.01%. Automatic Data Processing’s payout ratio is 66.79%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

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Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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