Automatic Data Processing, Inc. (NASDAQ:ADP) Receives $273.50 Consensus PT from Analysts

Automatic Data Processing, Inc. (NASDAQ:ADP) has received a consensus recommendation of “Hold” from the twelve research firms that are covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, eight have given a hold rating and three have issued a buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $273.50.

Several equities analysts have recently commented on ADP shares. Wells Fargo & Company upped their target price on Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. UBS Group raised their target price on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Weiss Ratings raised shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. Guggenheim upped their price target on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Finally, BMO Capital Markets upped their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 29th.

Insiders Place Their Bets

In other news, CEO Maria Black sold 29,810 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares of the company’s stock, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 2,414 shares of the stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares of the company’s stock, valued at $2,565,889.20. This trade represents a 19.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 33,773 shares of company stock worth $9,450,629. Insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth $25,000. Cornerstone Financial Management LLC acquired a new stake in Automatic Data Processing during the 4th quarter worth about $26,000. Bard Associates Inc. acquired a new stake in Automatic Data Processing during the 4th quarter worth about $28,000. Prosperity Bancshares Inc purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $33,000. Finally, Wilkerson Advisory Group LLC purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $36,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $277.62 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing has a 1 year low of $188.16 and a 1 year high of $302.68. The firm’s 50-day simple moving average is $263.42 and its 200-day simple moving average is $230.79. The firm has a market cap of $110.29 billion, a PE ratio of 25.38, a price-to-earnings-growth ratio of 2.52 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The business had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. During the same period in the previous year, the business earned $2.26 EPS. The business’s quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities analysts forecast that Automatic Data Processing will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.4%. Automatic Data Processing’s payout ratio is presently 62.16%.

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.