Automatic Data Processing (NASDAQ:ADP) Price Target Lowered to $210.00 at UBS Group

Automatic Data Processing (NASDAQ:ADP) had its price target reduced by UBS Group from $220.00 to $210.00 in a report issued on Monday,Benzinga reports. They currently have a neutral rating on the business services provider’s stock.

A number of other research firms have also recently commented on ADP. Citigroup lowered their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. JPMorgan Chase & Co. lowered their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Morgan Stanley lowered their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target on the stock. Finally, Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $278.62.

Automatic Data Processing Trading Up 3.5%

NASDAQ:ADP opened at $195.38 on Monday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $78.67 billion, a PE ratio of 18.79 and a beta of 0.85. The firm’s 50 day moving average is $212.01 and its 200 day moving average is $246.07. Automatic Data Processing has a 12 month low of $188.16 and a 12 month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for 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%. Automatic Data Processing’s revenue was up 6.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 3.5%. Automatic Data Processing’s payout ratio is 65.38%.

Automatic Data Processing announced that its board has authorized a share buyback program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, VP David Foskett sold 266 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred 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 sale, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,809 shares of company stock valued at $410,410. Company insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

A number of hedge funds and other institutional investors have recently bought and sold shares of ADP. Imprint Wealth LLC bought a new stake in Automatic Data Processing during the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new stake in Automatic Data Processing during the 4th quarter worth approximately $26,000. TruNorth Capital Management LLC bought a new stake in Automatic Data Processing during the 3rd quarter worth approximately $28,000. Bard Associates Inc. bought a new stake in Automatic Data Processing during the 4th quarter worth approximately $28,000. Finally, Cloud Capital Management LLC bought a new stake in Automatic Data Processing during the 3rd quarter worth approximately $29,000. 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.