Automatic Data Processing (NASDAQ:ADP) Now Covered by Guggenheim

Guggenheim started coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a report released on Thursday morning, Marketbeat Ratings reports. The brokerage issued a buy rating and a $270.00 price target on the business services provider’s stock.

A number of other brokerages have also recently issued reports on ADP. Citigroup cut their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target for the company. Stifel Nicolaus lowered 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. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Finally, Wells Fargo & Company reduced their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $288.46.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $210.66 on Thursday. The business has a 50-day simple moving average of $230.43 and a 200 day simple moving average of $257.62. Automatic Data Processing has a one year low of $203.26 and a one year high of $329.93. 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 has a market capitalization of $84.82 billion, a price-to-earnings ratio of 20.26 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter in the prior year, the company earned $2.35 earnings per share. The company’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, research analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has initiated a stock buyback program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The business 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. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. Automatic Data Processing’s payout ratio is presently 65.38%.

Insider Buying and Selling

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares of the company’s stock, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction 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 sale, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. The trade was a 2.37% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 4,058 shares of company stock valued at $1,000,263. 0.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Laurel Wealth Advisors LLC increased its stake in Automatic Data Processing by 30,110.7% in the 2nd 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 buying an additional 4,653,304 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Automatic Data Processing by 6,493.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after acquiring an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. grew its holdings in shares of Automatic Data Processing by 950.1% in the fourth 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 acquiring an additional 3,223,855 shares in the last quarter. Norges Bank purchased a new stake in shares of Automatic Data Processing during the fourth quarter valued at approximately $721,738,000. Finally, Wellington Management Group LLP increased its position in shares of Automatic Data Processing by 47.8% during the third 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 hedge funds and other institutional investors.

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.