Automatic Data Processing, Inc. (NASDAQ:ADP) Receives $310.69 Average Price Target from Brokerages

Key Points

• Automatic Data Processing (ADP) has a consensus rating of "Hold" from thirteen brokerages, with one sell, ten hold, and two buy ratings.
• The average 12-month price target for ADP shares is $310.69, reflecting varying price adjustments from several equity analysts.
• ADP reported earnings of $2.26 per share for the last quarter, surpassing analyst estimates and showing a revenue increase of 6.3% year-over-year.

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) have earned an average rating of "Hold" from the twelve brokerages that are currently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, nine have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $314.33.

Several equities analysts recently issued reports on the company. Morgan Stanley boosted their price target on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday. Royal Bank Of Canada restated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, June 5th. UBS Group lowered their price target on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research note on Friday, June 13th. Stifel Nicolaus upped their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday. Finally, Mizuho upped their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research note on Friday, June 13th.

Institutional Investors Weigh In On Automatic Data Processing

Large investors have recently bought and sold shares of the business. Activest Wealth Management grew its position in Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after acquiring an additional 78 shares during the last quarter. Harbor Asset Planning Inc. acquired a new position in Automatic Data Processing during the 2nd quarter worth $26,000. Mid American Wealth Advisory Group Inc. acquired a new position in Automatic Data Processing during the 2nd quarter worth $26,000. Solstein Capital LLC acquired a new position in Automatic Data Processing during the 2nd quarter worth $28,000. Finally, Clarity Asset Management Inc. acquired a new position in Automatic Data Processing during the 1st quarter worth $29,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP traded down $9.06 during trading hours on Friday, hitting $300.44. 1,791,558 shares of the company's stock were exchanged, compared to its average volume of 1,385,865. Automatic Data Processing has a 1-year low of $256.47 and a 1-year high of $329.93. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.02. The stock has a market capitalization of $121.95 billion, a price-to-earnings ratio of 30.10, a PEG ratio of 2.84 and a beta of 0.81. The company's 50-day moving average price is $310.28 and its 200-day moving average price is $305.18.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%. The firm had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same period in the previous year, the company posted $2.09 earnings per share. The company's quarterly revenue was up 6.3% compared to the same quarter last year. On average, sell-side analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

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.