Automatic Data Processing (NASDAQ:ADP) Now Covered by Analysts at Cantor Fitzgerald

Cantor Fitzgerald started coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a research report sent to investors on Tuesday, Marketbeat.com reports. The firm issued an overweight rating and a $306.00 price target on the business services provider’s stock.

Several other equities research analysts have also recently issued reports on ADP. Jefferies Financial Group restated an “underperform” rating and set a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. JPMorgan Chase & Co. lowered their price target on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Citigroup initiated coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective for the company. Wells Fargo & Company decreased their target price on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus target price of $306.38.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $254.51 on Tuesday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a market cap of $102.94 billion, a PE ratio of 25.12 and a beta of 0.86. The firm has a 50 day simple moving average of $258.54 and a 200-day simple moving average of $278.75. Automatic Data Processing has a 1-year low of $247.18 and a 1-year high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, topping the consensus estimate of $2.44 by $0.05. The firm had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. Automatic Data Processing’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same period in the previous year, the company earned $2.33 EPS. On average, equities analysts expect that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is 67.13%.

Automatic Data Processing declared that its board has approved a stock buyback plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Kwon sold 806 shares of the stock in a transaction on Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the sale, the vice president owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. This represents a 6.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 2,249 shares of company stock valued at $589,852. 0.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently modified their holdings of the stock. Jacobsen Capital Management boosted its holdings in Automatic Data Processing by 3.8% in the 2nd quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock worth $280,000 after acquiring an additional 33 shares during the period. Signature Wealth Management Group lifted its position in shares of Automatic Data Processing by 2.3% during the second quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock worth $447,000 after purchasing an additional 33 shares in the last quarter. Ameritas Advisory Services LLC boosted its stake in shares of Automatic Data Processing by 2.1% in the second quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider’s stock valued at $502,000 after purchasing an additional 34 shares during the period. PGIM Custom Harvest LLC boosted its stake in shares of Automatic Data Processing by 4.9% in the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock valued at $223,000 after purchasing an additional 34 shares during the period. Finally, Texas Yale Capital Corp. grew its holdings in Automatic Data Processing by 0.4% during the 2nd quarter. Texas Yale Capital Corp. now owns 8,333 shares of the business services provider’s stock valued at $2,570,000 after purchasing an additional 35 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.