Automatic Data Processing (NASDAQ:ADP) Hits New 12-Month High – What’s Next?

Automatic Data Processing, Inc. (NASDAQ:ADP) shares hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $294.27 and last traded at $292.75, with a volume of 2,503,096 shares changing hands. The stock had previously closed at $287.03.

Key Stories Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Analysts expect ADP to report low-double-digit earnings growth in its upcoming first-quarter results, raising expectations for another strong print and potentially supportive guidance. Automatic Data Processing’s Quarterly Earnings Preview: What You Need to Know
• Positive Sentiment: A valuation analysis suggests ADP could trade at a roughly 17% premium based on its cash-flow generation, reinforcing the bullish case for the company’s predictable, recurring revenue model. Automatic Data Processing Stock Could Trade At A 17% Premium On Cash Flow
• Positive Sentiment: ADP reached a new 52-week high ahead of earnings, signaling strong investor momentum and confidence in the company’s operating outlook. Automatic Data Processing Stock Reaches a 52-Week High Ahead of Results
• Neutral Sentiment: ADP is scheduled to release quarterly results on October 28 before the Xetra market opens, giving investors a near-term catalyst while also increasing the risk of volatility if results or guidance disappoint. ADP Stock Has Results Scheduled October 28 Ahead of Xetra Open
• Neutral Sentiment: Broader concern that the artificial-intelligence trade may be weakening could encourage some investors to favor established, income-oriented companies such as ADP, although a wider market selloff could still weigh on the shares. The All-In Hosts Asked If the AI Trade Is Cracking

Analysts Set New Price Targets

ADP has been the topic of several analyst reports. Weiss Ratings upgraded Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, September 22nd. Cantor Fitzgerald raised their price objective on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Citigroup lifted their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. Morgan Stanley lifted their target price on Automatic Data Processing from $240.00 to $286.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Finally, TD Cowen upped their price target on Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a research note on Monday, July 6th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $273.50.

Automatic Data Processing Stock Up 4.6%

The business has a 50 day moving average of $274.83 and a two-hundred day moving average of $245.07. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $122.02 billion, a PE ratio of 28.15, a PEG ratio of 2.67 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping analysts’ consensus estimates of $2.59 by $0.05. The company had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. Automatic Data Processing’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same period last year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts predict that Automatic Data Processing, Inc. will post 12.27 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were given a $1.70 dividend. The ex-dividend date was Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.2%. Automatic Data Processing’s payout ratio is 62.16%.

Insider Transactions at Automatic Data Processing

In other news, VP Brian L. Michaud sold 120 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the sale, the vice president directly owned 18,442 shares of the company’s stock, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm’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 transaction of $8,373,927.10. Following the completion of the transaction, the chief executive officer directly owned 80,624 shares of the company’s stock, valued at $22,648,087.84. This represents a 26.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 33,773 shares of company stock valued at $9,450,629. Insiders own 0.15% of the company’s stock.

Institutional Trading of Automatic Data Processing

A number of large investors have recently made changes to their positions in ADP. Fifth Third Wealth Advisors LLC lifted its holdings in shares of Automatic Data Processing by 6.1% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 6,478 shares of the business services provider’s stock valued at $1,672,000 after buying an additional 373 shares during the period. TSA Wealth Managment LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at $201,000. XXI Wealth LLC boosted its stake in shares of Automatic Data Processing by 28.7% during the 3rd quarter. XXI Wealth LLC now owns 1,980 shares of the business services provider’s stock worth $511,000 after purchasing an additional 442 shares during the last quarter. Andrew Hill Investment Advisors Inc. increased its stake in Automatic Data Processing by 56.9% in the third quarter. Andrew Hill Investment Advisors Inc. now owns 22,450 shares of the business services provider’s stock valued at $5,793,000 after purchasing an additional 8,145 shares during the last quarter. Finally, Boomfish Wealth Group LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth about $257,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.