Automatic Data Processing (NASDAQ:ADP) Upgraded at Guggenheim

Automatic Data Processing (NASDAQ:ADP) was upgraded by equities researchers at Guggenheim to a “strong-buy” rating in a research note issued on Wednesday,Zacks.com reports.

Other analysts also recently issued reports about the company. Morgan Stanley cut their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday, January 29th. 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 note on Thursday, January 29th. Jefferies Financial Group reaffirmed 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. Wells Fargo & Company lowered their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and a consensus target price of $288.46.

Automatic Data Processing Trading Up 1.1%

Shares of ADP opened at $210.66 on Wednesday. Automatic Data Processing has a 12-month low of $203.26 and a 12-month high of $329.93. The firm has a market capitalization of $84.82 billion, a P/E ratio of 20.26 and a beta of 0.86. The firm has a 50-day moving average price of $230.43 and a 200 day moving average price of $257.62. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

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

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

Insider Buying and Selling

In related news, VP David Kwon sold 806 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $264.80, for a total transaction of $213,428.80. Following the sale, the vice president directly owned 11,187 shares in the company, valued at approximately $2,962,317.60. This represents a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Foskett sold 266 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 4,058 shares of company stock worth $1,000,263 in the last quarter. Company insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its stake in Automatic Data Processing by 92.1% in the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after buying an additional 4,808 shares in the last quarter. Bison Wealth LLC boosted its holdings in Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after purchasing an additional 681 shares in the last quarter. Schnieders Capital Management LLC. increased its stake in Automatic Data Processing by 21.8% in the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock valued at $388,000 after purchasing an additional 225 shares during the last quarter. Howe & Rusling Inc. raised its holdings in Automatic Data Processing by 133.9% during the second quarter. Howe & Rusling Inc. now owns 3,642 shares of the business services provider’s stock worth $1,123,000 after purchasing an additional 2,085 shares in the last quarter. Finally, Willis Investment Counsel lifted its position in shares of Automatic Data Processing by 13.8% during the 2nd quarter. Willis Investment Counsel now owns 79,337 shares of the business services provider’s stock worth $24,468,000 after buying an additional 9,600 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

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.