Automatic Data Processing (NASDAQ:ADP) Given New $340.00 Price Target at Guggenheim

Key Points

• Guggenheim raised ADP’s price target to $340 from $300 and maintained a “Buy” rating, implying 10.89% upside from the previous close.
• ADP’s latest quarterly results exceeded expectations, with earnings of $2.64 per share versus $2.59 expected and revenue of $5.47 billion; revenue increased 6.8% year over year.
• Despite Guggenheim’s bullish view, broader analyst sentiment remains “Hold,” with a consensus price target of $276.36. Insiders sold $9.45 million of shares over the past 90 days, while institutional investors own 80.03% of the stock.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its target price increased by analysts at Guggenheim from $300.00 to $340.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the business services provider's stock. Guggenheim's price objective indicates a potential upside of 10.89% from the stock's previous close.

A number of other research analysts have also commented on ADP. Weiss Ratings raised Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. BMO Capital Markets increased their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. TD Cowen lifted their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research report on Monday, July 6th. UBS Group lifted their price target on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Finally, Citigroup boosted their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $276.36.

Automatic Data Processing Stock Down 0.4%

NASDAQ:ADP traded down $1.33 during mid-day trading on Friday, reaching $306.61. The stock had a trading volume of 248,928 shares, compared to its average volume of 2,843,205. The company has a market capitalization of $121.49 billion, a price-to-earnings ratio of 28.01, a price-to-earnings-growth ratio of 2.67 and a beta of 0.83. The stock's 50 day simple moving average is $274.83 and its two-hundred day simple moving average is $245.07. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $309.40.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm's revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the company earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities analysts anticipate that Automatic Data Processing will post 12.27 EPS for the current year.

Insiders Place Their Bets

In other news, VP David Kwon sold 798 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the sale, the vice president owned 13,193 shares in the company, valued at approximately $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the transaction, the vice president directly owned 18,824 shares in the company, valued at $5,324,744.88. This trade represents a 3.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,773 shares of company stock valued at $9,450,629 over the last ninety days. 0.15% of the stock is owned by insiders.

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $13,283,000. Royal Capital Wealth Management LLC acquired a new position in shares of Automatic Data Processing in the second quarter valued at $1,226,000. Canada Pension Plan Investment Board acquired a new position in shares of Automatic Data Processing in the second quarter valued at $152,706,000. Fulton Bank N.A. lifted its position in Automatic Data Processing by 192.0% in the second quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock worth $1,605,000 after purchasing an additional 4,711 shares during the period. Finally, Bank of America Corp DE bought a new position in Automatic Data Processing in the second quarter worth $1,231,175,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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