Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Analysts maintain a “Hold” consensus on ADP, with nine hold, three buy, and one sell rating among 13 firms. The average 12-month price target is $273.50.
• ADP exceeded quarterly expectations, reporting $2.64 in adjusted earnings per share and $5.47 billion in revenue, with revenue rising 6.8% year over year.
• The company declared a quarterly dividend of $1.70, equivalent to $6.80 annually and a 2.5% yield; institutional investors own approximately 80% of outstanding shares.

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) have earned an average recommendation of "Hold" from the thirteen research firms that are covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, nine have assigned a hold recommendation and three have given a buy recommendation to the company. The average 12-month price target among analysts that have covered the stock in the last year is $273.50.

ADP has been the topic of a number of research analyst reports. Morgan Stanley boosted their price objective on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Wells Fargo & Company lifted their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Argus lowered their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a report on Tuesday, May 5th. Mizuho lowered their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Finally, Cantor Fitzgerald upped their price target on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research note on Monday, August 3rd.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the company's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president directly owned 9,660 shares of the company's stock, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Automatic Data Processing

Large investors have recently made changes to their positions in the company. Madison Asset Management LLC acquired a new position in Automatic Data Processing in the second quarter worth approximately $10,848,000. Csenge Advisory Group acquired a new stake in Automatic Data Processing in the second quarter valued at approximately $344,000. Johnson Financial Group Inc. acquired a new stake in Automatic Data Processing in the second quarter valued at approximately $3,767,000. Tocqueville Asset Management L.P. bought a new stake in Automatic Data Processing in the second quarter worth approximately $19,223,000. Finally, one8zero8 LLC bought a new stake in Automatic Data Processing in the second quarter worth approximately $612,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Up 0.9%

Shares of Automatic Data Processing stock opened at $273.67 on Tuesday. Automatic Data Processing has a 1 year low of $188.16 and a 1 year high of $310.08. The company has a market cap of $108.72 billion, a P/E ratio of 25.02 and a beta of 0.81. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock has a 50-day moving average price of $241.73 and a 200 day moving average price of $224.87.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 71.34% and a net margin of 20.11%.The business's revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, analysts expect that Automatic Data Processing will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a $1.70 dividend. The ex-dividend date is Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a yield of 2.5%. Automatic Data Processing's payout ratio is 62.16%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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