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

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have been given an average recommendation of “Hold” by the twelve research firms that are presently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $307.08.

Several equities analysts have recently weighed in on ADP shares. Mizuho raised their price target on Automatic Data Processing from $321.00 to $332.00 and gave the company an “outperform” rating in a report on Friday, June 13th. Morgan Stanley raised their price target on Automatic Data Processing from $305.00 to $310.00 and gave the company an “equal weight” rating in a report on Tuesday, June 17th. UBS Group reduced their price target on Automatic Data Processing from $323.00 to $315.00 and set a “neutral” rating for the company in a report on Friday, June 13th. TD Securities raised their price target on Automatic Data Processing from $298.00 to $321.00 and gave the company a “hold” rating in a report on Wednesday, May 21st. Finally, Stifel Nicolaus lifted their price objective on Automatic Data Processing to $305.00 and gave the stock a “buy” rating in a report on Friday, May 2nd.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $308.96 on Monday. The firm has a market cap of $125.41 billion, a PE ratio of 31.62, a price-to-earnings-growth ratio of 2.87 and a beta of 0.76. Automatic Data Processing has a fifty-two week low of $231.27 and a fifty-two week high of $329.93. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.02 and a current ratio of 1.02. The business has a 50 day moving average price of $312.20 and a 200-day moving average price of $303.61.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, April 30th. The business services provider reported $3.06 EPS for the quarter, topping analysts’ consensus estimates of $2.97 by $0.09. Automatic Data Processing had a return on equity of 77.33% and a net margin of 19.79%. The company had revenue of $5.55 billion during the quarter, compared to analyst estimates of $5.49 billion. During the same quarter last year, the firm posted $2.88 earnings per share. The firm’s revenue was up 5.7% on a year-over-year basis. Equities research analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 1st. Investors of record on Friday, June 13th were given a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a yield of 1.99%. The ex-dividend date of this dividend was Friday, June 13th. Automatic Data Processing’s dividend payout ratio is currently 63.05%.

Insider Transactions at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 478 shares of the company’s stock in a transaction dated Thursday, April 10th. The stock was sold at an average price of $293.14, for a total transaction of $140,120.92. Following the transaction, the vice president directly owned 7,364 shares of the company’s stock, valued at $2,158,682.96. This represents a 6.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.21% of the stock is owned by corporate insiders.

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Trust Co of the South boosted its position in Automatic Data Processing by 1.3% during the second quarter. Trust Co of the South now owns 3,116 shares of the business services provider’s stock worth $961,000 after purchasing an additional 41 shares in the last quarter. AG2R LA Mondiale Gestion D Actifs purchased a new position in Automatic Data Processing during the first quarter worth approximately $4,933,000. Swedbank AB boosted its position in Automatic Data Processing by 0.9% during the first quarter. Swedbank AB now owns 238,543 shares of the business services provider’s stock worth $72,882,000 after purchasing an additional 2,086 shares in the last quarter. Voya Investment Management LLC boosted its position in Automatic Data Processing by 0.5% during the first quarter. Voya Investment Management LLC now owns 142,546 shares of the business services provider’s stock worth $43,552,000 after purchasing an additional 731 shares in the last quarter. Finally, Howe & Rusling Inc. boosted its position in Automatic Data Processing by 5.6% during the first quarter. Howe & Rusling Inc. now owns 1,557 shares of the business services provider’s stock worth $476,000 after purchasing an additional 83 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Company Profile

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.