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

Key Points

• Automatic Data Processing, Inc. (NASDAQ:ADP) has received a consensus rating of "Hold" from twelve brokerages, with ten analysts rating it as such and two giving it a buy rating.
• The company recently announced a quarterly dividend of $1.54, representing an annualized dividend of $6.16 and a yield of 2.1%.
• In the last 90 days, insiders sold a total of 52,516 shares of Automatic Data Processing stock, worth approximately $15.63 million, indicating a substantial decrease in their ownership positions.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) has received a consensus rating of "Hold" from the twelve research firms that are presently covering the stock, MarketBeat.com reports. Ten research analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $314.7273.

ADP has been the topic of a number of analyst reports. UBS Group reduced their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research note on Wednesday. Stifel Nicolaus lifted their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Mizuho lifted their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. Finally, Morgan Stanley upped their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP traded up $1.05 during midday trading on Friday, hitting $292.00. The company's stock had a trading volume of 4,039,574 shares, compared to its average volume of 1,574,773. The business's 50 day simple moving average is $301.38 and its 200 day simple moving average is $303.81. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market cap of $118.27 billion, a P/E ratio of 29.26, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82. Automatic Data Processing has a 12-month low of $272.18 and a 12-month high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.03. The firm had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company's revenue for the quarter was up 6.3% on a year-over-year basis. During the same period last year, the firm posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, analysts forecast that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be issued a $1.54 dividend. The ex-dividend date is Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Insiders Place Their Bets

In related news, VP Michael A. Bonarti sold 8,728 shares of the company's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the completion of the sale, the vice president owned 80,531 shares in the company, valued at $24,032,866.33. This represents a 9.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Maria Black sold 23,605 shares of the company's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the transaction, the chief executive officer owned 76,161 shares of the company's stock, valued at approximately $22,720,349.52. The trade was a 23.66% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 52,516 shares of company stock worth $15,632,410. 0.21% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in Automatic Data Processing by 92.1% in the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after buying an additional 4,808 shares during the period. Bank Pictet & Cie Europe AG purchased a new stake in shares of Automatic Data Processing during the fourth quarter valued at approximately $957,000. Bison Wealth LLC raised its stake in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after purchasing an additional 681 shares during the period. State of Wyoming raised its stake in shares of Automatic Data Processing by 26.1% during the fourth quarter. State of Wyoming now owns 449 shares of the business services provider's stock valued at $131,000 after purchasing an additional 93 shares during the period. Finally, Novem Group purchased a new stake in shares of Automatic Data Processing during the fourth quarter valued at approximately $286,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

About Automatic Data Processing

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.