TD Cowen Upgrades Automatic Data Processing (NASDAQ:ADP) to “Hold”

Automatic Data Processing (NASDAQ:ADP) was upgraded by equities researchers at TD Cowen to a “hold” rating in a report released on Monday,Zacks.com reports.

Other analysts have also issued research reports about the stock. Morgan Stanley cut their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research note on Tuesday, April 28th. Stifel Nicolaus cut their price objective on shares of Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. Citigroup lowered their price target 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. BMO Capital Markets dropped their price target on shares of Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating on the stock in a research report on Tuesday, April 7th. Finally, Mizuho dropped their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus target price of $253.50.

Automatic Data Processing Stock Up 3.9%

NASDAQ:ADP opened at $222.94 on Monday. The firm has a market capitalization of $89.12 billion, a P/E ratio of 20.80 and a beta of 0.83. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $329.93. The company’s fifty day moving average price is $206.29 and its 200-day moving average price is $233.09. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping analysts’ consensus estimates of $3.30 by $0.07. The firm had revenue of $5.94 billion for the quarter, compared to analyst estimates 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 prior year, the business earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities research analysts anticipate that Automatic Data Processing will post 11.07 EPS for the current year.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds and other institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. raised its stake in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after purchasing an additional 3,415,576 shares during the period. Cardano Risk Management B.V. raised its stake in Automatic Data Processing by 950.1% during the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock worth $916,557,000 after purchasing an additional 3,223,855 shares during the period. Norges Bank purchased a new position in Automatic Data Processing during the fourth quarter worth about $721,738,000. Wellington Management Group LLP raised its stake in Automatic Data Processing by 47.8% during the third 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 during the period. Finally, Clearbridge Investments LLC raised its stake in Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock worth $434,151,000 after purchasing an additional 964,405 shares during the period. 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.