Automatic Data Processing, Inc. (NASDAQ:ADP) Given Consensus Rating of “Hold” by 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 company, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $290.00.

ADP has been the subject of several recent analyst reports. Jefferies Financial Group restated an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Citigroup reduced their price objective 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. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Finally, Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $208.52 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The business’s 50-day simple moving average is $234.58 and its two-hundred day simple moving average is $260.24. The stock has a market cap of $83.96 billion, a PE ratio of 20.05 and a beta of 0.86. Automatic Data Processing has a 52 week low of $203.26 and a 52 week high of $329.93.

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

Automatic Data Processing declared that its Board of Directors has authorized a share buyback plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.3%. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, the vice president owned 10,954 shares in the company, valued at $2,596,098. This trade represents a 2.37% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Laurel Wealth Advisors LLC lifted its position in Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock valued at $1,439,845,000 after purchasing an additional 4,653,304 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Automatic Data Processing by 6,493.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after buying an additional 3,415,576 shares during the last quarter. Cardano Risk Management B.V. raised its position in shares of Automatic Data Processing by 950.1% during the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock valued at $916,557,000 after buying an additional 3,223,855 shares in the last quarter. Norges Bank purchased a new stake in shares of Automatic Data Processing during the 4th quarter valued at about $721,738,000. Finally, Wellington Management Group LLP lifted its holdings in shares of Automatic Data Processing by 47.8% in the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock valued at $2,004,691,000 after acquiring an additional 2,208,927 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

About Automatic Data Processing

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.