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

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have been given an average recommendation of “Hold” by the eleven analysts that are currently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have given a buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $293.55.

Several analysts have weighed in on ADP shares. TD Cowen boosted their price target on Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a research note on Friday, November 1st. StockNews.com downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Wednesday, February 5th. Barclays lifted their price objective on shares of Automatic Data Processing from $325.00 to $350.00 and gave the company an “overweight” rating in a research note on Monday, February 3rd. Mizuho increased their price objective on shares of Automatic Data Processing from $281.00 to $310.00 and gave the stock an “outperform” rating in a research note on Monday, November 4th. Finally, UBS Group boosted their target price on shares of Automatic Data Processing from $270.00 to $295.00 and gave the company a “neutral” rating in a research report on Tuesday, October 22nd.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $305.78 on Friday. The company has a 50 day moving average price of $297.21 and a 200 day moving average price of $287.34. The firm has a market capitalization of $124.59 billion, a P/E ratio of 31.89, a PEG ratio of 3.60 and a beta of 0.79. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.59. Automatic Data Processing has a 52 week low of $231.27 and a 52 week high of $311.67.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 29th. The business services provider reported $2.35 EPS for the quarter, topping the consensus estimate of $2.30 by $0.05. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%. Sell-side analysts expect that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be issued a $1.54 dividend. This represents a $6.16 annualized dividend and a yield of 2.01%. The ex-dividend date is Friday, March 14th. Automatic Data Processing’s payout ratio is currently 64.23%.

Insider Buying and Selling

In other news, VP Brian L. Michaud sold 362 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $293.83, for a total value of $106,366.46. Following the transaction, the vice president now directly owns 13,706 shares of the company’s stock, valued at approximately $4,027,233.98. This trade represents a 2.57 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP David Foskett sold 1,067 shares of the company’s stock in a transaction that occurred on Monday, January 13th. The shares were sold at an average price of $286.15, for a total value of $305,322.05. Following the completion of the sale, the vice president now owns 6,140 shares of the company’s stock, valued at $1,756,961. This trade represents a 14.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 5,478 shares of company stock valued at $1,617,241. 0.21% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of ADP. Atomi Financial Group Inc. grew its holdings in shares of Automatic Data Processing by 4.1% during the 3rd quarter. Atomi Financial Group Inc. now owns 3,170 shares of the business services provider’s stock worth $877,000 after purchasing an additional 126 shares during the period. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors boosted its stake in Automatic Data Processing by 83.2% during the third quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors now owns 4,440 shares of the business services provider’s stock worth $1,229,000 after buying an additional 2,017 shares during the period. CWM LLC increased its position in shares of Automatic Data Processing by 8.7% during the third quarter. CWM LLC now owns 19,941 shares of the business services provider’s stock valued at $5,518,000 after acquiring an additional 1,603 shares during the last quarter. Hexagon Capital Partners LLC raised its stake in shares of Automatic Data Processing by 78.5% in the 3rd quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider’s stock valued at $32,000 after acquiring an additional 51 shares during the period. Finally, Wedmont Private Capital lifted its holdings in shares of Automatic Data Processing by 6.6% in the 3rd quarter. Wedmont Private Capital now owns 3,747 shares of the business services provider’s stock worth $1,057,000 after acquiring an additional 231 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

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.