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

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have received an average rating of “Hold” from the thirteen research firms that are currently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $290.00.

Several research analysts recently weighed in on the company. Wells Fargo & Company lowered their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. JPMorgan Chase & Co. decreased their price target on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Stifel Nicolaus reduced their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a report on Monday, February 9th. Finally, Citigroup decreased their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP David Foskett sold 266 shares of the firm’s stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 3,515 shares of company stock worth $887,074 over the last quarter. Company insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Large investors have recently modified their holdings of the stock. Exchange Traded Concepts LLC boosted its holdings in Automatic Data Processing by 141.5% in the 3rd quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider’s stock worth $3,899,000 after acquiring an additional 7,782 shares during the period. Mitchell Capital Management Co. raised its stake in shares of Automatic Data Processing by 325.0% during the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider’s stock valued at $1,996,000 after purchasing an additional 5,200 shares during the period. Atlantic Union Bankshares Corp lifted its position in shares of Automatic Data Processing by 136.0% during the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider’s stock worth $14,080,000 after purchasing an additional 27,644 shares in the last quarter. CIBC Asset Management Inc boosted its stake in shares of Automatic Data Processing by 2.6% in the third quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock valued at $53,875,000 after purchasing an additional 4,720 shares during the period. Finally, Thrivent Financial for Lutherans grew its holdings in Automatic Data Processing by 18.4% during the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider’s stock valued at $40,566,000 after purchasing an additional 21,444 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Shares of ADP stock opened at $212.11 on Tuesday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The firm’s 50-day moving average is $251.62 and its two-hundred day moving average is $271.46. Automatic Data Processing has a 12 month low of $208.62 and a 12 month high of $329.93. The company has a market capitalization of $85.40 billion, a PE ratio of 20.40 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

Automatic Data Processing declared that its Board of Directors has approved a stock repurchase program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

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.