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

Automatic Data Processing, Inc. (NASDAQ:ADPGet Rating) has been given a consensus recommendation of “Hold” by the fifteen research firms that are covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, seven have given a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $231.43.

Several brokerages have weighed in on ADP. Barclays boosted their price objective on Automatic Data Processing from $238.00 to $257.00 and gave the stock an “overweight” rating in a research note on Monday, May 2nd. StockNews.com began coverage on Automatic Data Processing in a research note on Thursday, March 31st. They set a “hold” rating on the stock. Deutsche Bank Aktiengesellschaft boosted their price objective on Automatic Data Processing from $203.00 to $234.00 in a research note on Thursday, April 28th. Bank of America raised Automatic Data Processing from an “underperform” rating to a “neutral” rating and set a $223.00 target price on the stock in a research note on Wednesday, March 9th. Finally, Stifel Nicolaus reaffirmed a “hold” rating and set a $238.00 target price (up previously from $222.00) on shares of Automatic Data Processing in a research note on Friday, March 11th.

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

A number of institutional investors and hedge funds have recently made changes to their positions in ADP. Homrich & Berg grew its position in shares of Automatic Data Processing by 25.7% during the 3rd quarter. Homrich & Berg now owns 8,695 shares of the business services provider’s stock valued at $1,738,000 after acquiring an additional 1,775 shares during the period. AXA S.A. grew its position in shares of Automatic Data Processing by 5.7% during the 3rd quarter. AXA S.A. now owns 518,875 shares of the business services provider’s stock valued at $103,734,000 after acquiring an additional 27,960 shares during the period. Vestmark Advisory Solutions Inc. grew its position in shares of Automatic Data Processing by 11.5% during the 4th quarter. Vestmark Advisory Solutions Inc. now owns 7,647 shares of the business services provider’s stock valued at $1,885,000 after acquiring an additional 791 shares during the period. Invesco Ltd. grew its position in shares of Automatic Data Processing by 3.4% during the 3rd quarter. Invesco Ltd. now owns 2,921,286 shares of the business services provider’s stock valued at $584,023,000 after acquiring an additional 97,374 shares during the period. Finally, Clear Street Markets LLC grew its position in shares of Automatic Data Processing by 15.1% during the 4th quarter. Clear Street Markets LLC now owns 4,275 shares of the business services provider’s stock valued at $1,054,000 after acquiring an additional 562 shares during the period. 78.84% of the stock is currently owned by institutional investors.

Shares of Automatic Data Processing stock opened at $222.28 on Wednesday. The stock’s 50-day simple moving average is $222.68 and its 200-day simple moving average is $221.47. Automatic Data Processing has a 52 week low of $192.18 and a 52 week high of $248.96. The company has a market capitalization of $92.86 billion, a price-to-earnings ratio of 32.83, a PEG ratio of 2.62 and a beta of 0.82. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.71.

Automatic Data Processing (NASDAQ:ADPGet Rating) last posted its earnings results on Wednesday, April 27th. The business services provider reported $2.21 EPS for the quarter, topping analysts’ consensus estimates of $2.08 by $0.13. The company 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 firm’s revenue for the quarter was up 10.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.89 earnings per share. On average, equities analysts expect that Automatic Data Processing will post 6.97 earnings per share for the current year.

The company also recently announced 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. This represents a $4.16 annualized dividend and a dividend yield of 1.87%. The ex-dividend date is Thursday, June 9th. Automatic Data Processing’s payout ratio is 61.45%.

Automatic Data Processing Company Profile (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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Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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