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 fourteen analysts that are presently covering the company, MarketBeat.com reports. Two analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and three have given a buy recommendation to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $312.6667.

A number of equities analysts recently commented on ADP shares. Stifel Nicolaus lifted their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a “hold” rating in a research report on Thursday, July 31st. JPMorgan Chase & Co. reduced their price target on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Morgan Stanley boosted their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an “equal weight” rating in a research report on Thursday, July 31st. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. Finally, Dbs Bank raised shares of Automatic Data Processing to a “hold” rating in a research note on Thursday, August 21st.

Automatic Data Processing Stock Up 0.7%

Shares of NASDAQ ADP opened at $254.16 on Friday. Automatic Data Processing has a 12-month low of $249.68 and a 12-month high of $329.93. The stock has a market cap of $102.79 billion, a PE ratio of 25.09, a P/E/G ratio of 2.39 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The company has a 50-day moving average of $284.90 and a 200 day moving average of $300.04.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. The business had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The business’s revenue was up 7.1% on a year-over-year basis. During the same period last year, the company posted $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, sell-side analysts predict that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Insider Activity

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of Automatic Data Processing stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total value of $2,604,697.04. Following the sale, the vice president owned 80,531 shares in the company, valued at $24,032,866.33. The trade was a 9.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the company’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $1,368,373.98. Following the completion of the transaction, the vice president directly owned 17,536 shares in the company, valued at approximately $5,200,651.52. This trade represents a 20.83% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 52,516 shares of company stock worth $15,632,410. 0.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently modified their holdings of ADP. Activest Wealth Management grew its holdings in Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock worth $25,000 after acquiring an additional 78 shares in the last quarter. Harbor Asset Planning Inc. purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth $26,000. Howard Hughes Medical Institute acquired a new position in shares of Automatic Data Processing during the second quarter worth $27,000. Finally, Solstein Capital LLC purchased a new position in Automatic Data Processing in the second quarter valued at $28,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.