Automatic Data Processing (NASDAQ:ADP) Issues Earnings Results

Automatic Data Processing (NASDAQ:ADP) announced its earnings results on Wednesday. The business services provider reported $2.88 earnings per share for the quarter, topping analysts’ consensus estimates of $2.79 by $0.09, Briefing.com reports. Automatic Data Processing had a net margin of 19.14% and a return on equity of 95.22%. The business had revenue of $5.30 billion during the quarter, compared to the consensus estimate of $5.22 billion. During the same quarter last year, the firm earned $2.52 earnings per share. Automatic Data Processing’s quarterly revenue was up 7.6% on a year-over-year basis. Automatic Data Processing updated its FY24 guidance to $9.05-$9.22 EPS and its FY 2024 guidance to 9.050-9.220 EPS.

Automatic Data Processing Stock Performance

Shares of ADP stock traded down $4.19 during mid-day trading on Thursday, reaching $243.14. The stock had a trading volume of 327,338 shares, compared to its average volume of 1,781,549. The firm’s 50 day simple moving average is $246.16 and its 200 day simple moving average is $239.11. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.69. Automatic Data Processing has a one year low of $205.53 and a one year high of $256.84. The firm has a market cap of $99.88 billion, a PE ratio of 28.27, a P/E/G ratio of 2.27 and a beta of 0.78.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be paid a dividend of $1.40 per share. The ex-dividend date of this dividend is Friday, June 14th. This represents a $5.60 annualized dividend and a yield of 2.30%. Automatic Data Processing’s payout ratio is 65.19%.

Insider Buying and Selling

In other news, VP Joseph Desilva sold 1,904 shares of Automatic Data Processing stock in a transaction on Thursday, February 22nd. The stock was sold at an average price of $255.00, for a total value of $485,520.00. Following the completion of the sale, the vice president now directly owns 17,179 shares of the company’s stock, valued at approximately $4,380,645. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, VP David Kwon sold 863 shares of the business’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $250.00, for a total value of $215,750.00. Following the sale, the vice president now directly owns 8,285 shares in the company, valued at $2,071,250. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Joseph Desilva sold 1,904 shares of Automatic Data Processing stock in a transaction dated Thursday, February 22nd. The shares were sold at an average price of $255.00, for a total value of $485,520.00. Following the completion of the sale, the vice president now directly owns 17,179 shares in the company, valued at approximately $4,380,645. The disclosure for this sale can be found here. Insiders sold 3,829 shares of company stock worth $965,274 in the last 90 days. 0.26% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

ADP has been the topic of a number of research analyst reports. Royal Bank of Canada reiterated a “sector perform” rating and issued a $267.00 target price on shares of Automatic Data Processing in a research note on Thursday, February 1st. Bank of America raised shares of Automatic Data Processing from an “underperform” rating to a “neutral” rating and upped their price objective for the company from $217.00 to $243.00 in a research note on Wednesday, January 17th. Mizuho increased their price target on shares of Automatic Data Processing from $265.00 to $272.00 and gave the company a “buy” rating in a research report on Monday, March 11th. Evercore ISI increased their price target on shares of Automatic Data Processing from $227.00 to $235.00 and gave the stock an “underperform” rating in a research note on Tuesday, March 26th. Finally, StockNews.com lowered shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Tuesday, March 19th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $258.55.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.