Automatic Data Processing (NASDAQ:ADP) Shares Gap Up – Here’s What Happened

Automatic Data Processing, Inc. (NASDAQ:ADP)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $214.60, but opened at $220.79. Automatic Data Processing shares last traded at $219.5110, with a volume of 152,511 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms have commented on ADP. Robert W. Baird reduced their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Wells Fargo & Company raised shares of Automatic Data Processing from an “underweight” rating to an “equal weight” rating and set a $214.00 price objective on the stock in a research report on Monday, May 18th. BMO Capital Markets reduced their target price on Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating for the company in a research note on Tuesday, April 7th. Argus reduced their target price on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating for the company in a research note on Tuesday, May 5th. Finally, Cantor Fitzgerald decreased their target price on Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating for the company in a research report on Wednesday, April 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 one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $244.29.

Automatic Data Processing Trading Up 2.3%

The firm’s 50-day moving average is $214.63 and its 200-day moving average is $227.68. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The firm has a market cap of $87.76 billion, a price-to-earnings ratio of 20.48 and a beta of 0.84.

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 the consensus estimate of $3.30 by $0.07. The firm 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 revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $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 anticipate that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 3.1%. Automatic Data Processing’s dividend payout ratio (DPR) is presently 63.43%.

Institutional Trading of Automatic Data Processing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ADP. Brighton Jones LLC boosted its position in shares of Automatic Data Processing by 92.1% during 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 during the last quarter. Bison Wealth LLC raised its position in Automatic Data Processing by 22.8% in the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after buying an additional 681 shares during the last quarter. Schnieders Capital Management LLC. raised its position in Automatic Data Processing by 21.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock valued at $388,000 after buying an additional 225 shares during the last quarter. Osterweis Capital Management Inc. bought a new position in Automatic Data Processing during the 2nd quarter valued at $108,000. Finally, Diversify Advisory Services LLC lifted its stake in Automatic Data Processing by 17.5% during the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider’s stock valued at $1,641,000 after acquiring an additional 815 shares in the last quarter. 80.03% of the stock is 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.