Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Average Rating of “Hold” from Analysts

Automatic Data Processing, Inc. (NASDAQ:ADP – Get Rating) has received a consensus rating of “Hold” from the fifteen research firms that are presently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $231.43.

ADP has been the topic of several recent research reports. Stifel Nicolaus reaffirmed a “hold” rating and set a $238.00 target price (up from $222.00) on shares of Automatic Data Processing in a report on Friday, March 11th. Bank of America upgraded Automatic Data Processing from an “underperform” rating to a “neutral” rating and set a $223.00 target price on the stock in a research report on Wednesday, March 9th. Deutsche Bank Aktiengesellschaft lifted their target price on Automatic Data Processing from $203.00 to $234.00 in a report on Thursday, April 28th. Barclays raised their price objective on shares of Automatic Data Processing from $238.00 to $257.00 and gave the stock an “overweight” rating in a research report on Monday, May 2nd. Finally, Robert W. Baird dropped their target price on shares of Automatic Data Processing from $242.00 to $220.00 in a research report on Thursday, January 27th.

Shares of ADP opened at $208.79 on Friday. The company has a market capitalization of $87.22 billion, a PE ratio of 30.84, a PEG ratio of 2.54 and a beta of 0.82. Automatic Data Processing has a 12 month low of $187.29 and a 12 month high of $248.96. The stock’s 50-day moving average price is $221.59 and its two-hundred day moving average price is $223.01. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.71.

Automatic Data Processing (NASDAQ:ADP – Get Rating) last announced its earnings results on Wednesday, April 27th. The business services provider reported $2.21 EPS for the quarter, topping the consensus estimate of $2.08 by $0.13. The firm had revenue of $4.51 billion for the quarter, compared to the consensus estimate of $4.45 billion. Automatic Data Processing had a return on equity of 56.01% and a net margin of 17.77%. The business’s quarterly revenue was up 10.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.89 EPS. Equities research analysts predict that Automatic Data Processing will post 6.97 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 1st. Investors of record on Friday, June 10th will be given a $1.04 dividend. The ex-dividend date is Thursday, June 9th. This represents a $4.16 annualized dividend and a yield of 1.99%. Automatic Data Processing’s payout ratio is 61.45%.

In other news, VP Christopher D’ambrosio sold 312 shares of the company’s stock in a transaction on Monday, May 9th. The shares were sold at an average price of $214.07, for a total value of $66,789.84. Following the completion of the sale, the vice president now owns 1,663 shares in the company, valued at approximately $355,998.41. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Deborah L. Dyson sold 2,787 shares of the firm’s stock in a transaction dated Tuesday, April 5th. The shares were sold at an average price of $234.55, for a total transaction of $653,690.85. Following the transaction, the vice president now directly owns 26,663 shares in the company, valued at $6,253,806.65. The disclosure for this sale can be found here. Insiders own 0.34% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of ADP. Bell Investment Advisors Inc purchased a new stake in shares of Automatic Data Processing during the third quarter valued at approximately $28,000. Sandy Cove Advisors LLC purchased a new stake in shares of Automatic Data Processing during the fourth quarter valued at approximately $28,000. Crewe Advisors LLC purchased a new stake in shares of Automatic Data Processing during the first quarter valued at approximately $28,000. Kozak & Associates Inc. purchased a new stake in shares of Automatic Data Processing during the third quarter valued at approximately $29,000. Finally, Tortoise Investment Management LLC increased its position in shares of Automatic Data Processing by 70.8% during the fourth quarter. Tortoise Investment Management LLC now owns 123 shares of the business services provider’s stock valued at $30,000 after acquiring an additional 51 shares during the last quarter. 78.84% of the stock is owned by institutional investors.

About Automatic Data Processing (Get Rating)

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

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