Cantor Fitzgerald Forecasts Strong Price Appreciation for Automatic Data Processing (NASDAQ:ADP) Stock

Key Points

• Cantor Fitzgerald raised ADP’s price target from $310 to $336 and maintained an “overweight” rating, implying 14.35% potential upside from the stock’s current price.
• Analyst sentiment remains mixed: ADP has a consensus “Hold” rating and an average price target of $285, with three Buy, nine Hold, and two Sell ratings.
• ADP recently exceeded quarterly expectations, reporting $2.82 in EPS versus $2.77 expected and $5.49 billion in revenue, up 6.1% year over year.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price objective increased by analysts at Cantor Fitzgerald from $310.00 to $336.00 in a report released on Friday, Benzinga reports. The firm currently has an "overweight" rating on the business services provider's stock. Cantor Fitzgerald's target price indicates a potential upside of 14.35% from the stock's current price.

A number of other research firms have also recently weighed in on ADP. Royal Bank Of Canada restated a "sector perform" rating and issued a $290.00 price target on shares of Automatic Data Processing in a report on Thursday. Jefferies Financial Group lifted their target price on shares of Automatic Data Processing from $225.00 to $250.00 and gave the stock an "underperform" rating in a research report on Wednesday, October 28th. Citigroup increased their price target on shares of Automatic Data Processing from $287.00 to $295.00 and gave the company a "neutral" rating in a research report on Thursday. Wells Fargo & Company lifted their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Finally, Stifel Nicolaus boosted their price target on Automatic Data Processing from $285.00 to $305.00 and gave the company a "hold" rating in a report on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $285.00.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $293.84 on Friday. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $309.40. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03. The firm has a market capitalization of $116.43 billion, a PE ratio of 26.05, a PEG ratio of 2.64 and a beta of 0.83. The stock's fifty day moving average is $277.25 and its 200 day moving average is $240.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.77 by $0.05. The firm had revenue of $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. Automatic Data Processing's revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.49 EPS. On average, sell-side analysts anticipate that Automatic Data Processing will post 12.36 earnings per share for the current year.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 798 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total transaction of $223,440.00. Following the sale, the vice president owned 13,193 shares in the company, valued at $3,694,040. This represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the sale, the chief executive officer owned 80,624 shares in the company, valued at $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 31,359 shares of company stock worth $8,809,422 over the last quarter. 0.15% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Polaris Financial Partners purchased a new stake in Automatic Data Processing in the 3rd quarter valued at about $25,000. Next Level Wealth Planning LLC purchased a new position in shares of Automatic Data Processing during the third quarter worth approximately $26,000. Whipplewood Advisors LLC raised its stake in shares of Automatic Data Processing by 2,740.0% during the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after acquiring an additional 137 shares in the last quarter. Pathway Financial Advisers LLC bought a new stake in shares of Automatic Data Processing during the third quarter valued at approximately $39,000. Finally, Kelly Lawrence W & Associates Inc. CA purchased a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $34,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

About Automatic Data Processing

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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