Automatic Data Processing (NASDAQ:ADP) Stock Rating Upgraded by Dbs Bank

Key Points

• Dbs Bank upgraded Automatic Data Processing's stock rating to "hold," signaling a cautious outlook for investors.
• Analysts have varied price targets for the stock, with Mizuho setting the highest target at $332.00, while the consensus target price stands at $317.00.
• Automatic Data Processing reported a 6.3% increase in year-over-year revenue, with quarterly earnings per share of $2.26, surpassing estimates.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) was upgraded by equities researchers at Dbs Bank to a "hold" rating in a research report issued on Thursday,Zacks.com reports.

ADP has been the subject of a number of other research reports. UBS Group dropped their price objective on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research report on Friday, June 13th. Stifel Nicolaus lifted 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, July 31st. Royal Bank Of Canada reissued 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 boosted their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Finally, BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research report on Thursday, July 10th. Two investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and a consensus price target of $317.00.

Automatic Data Processing Price Performance

Shares of ADP stock traded up $3.01 during mid-day trading on Thursday, reaching $307.95. The stock had a trading volume of 1,150,918 shares, compared to its average volume of 1,580,948. Automatic Data Processing has a 12-month low of $267.79 and a 12-month high of $329.93. The company has a market cap of $124.73 billion, a P/E ratio of 30.86, a price-to-earnings-growth ratio of 2.82 and a beta of 0.81. The business has a 50-day simple moving average of $305.10 and a 200 day simple moving average of $305.61. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

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

Institutional Trading of Automatic Data Processing

Several institutional investors have recently modified their holdings of ADP. Activest Wealth Management lifted its holdings in shares of Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after purchasing an additional 78 shares during the last quarter. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing during the second quarter valued at $26,000. Harbor Asset Planning Inc. purchased a new stake in shares of Automatic Data Processing during the second quarter valued at $26,000. Howard Hughes Medical Institute purchased a new stake in shares of Automatic Data Processing during the second quarter valued at $27,000. Finally, Solstein Capital LLC purchased a new stake in shares of Automatic Data Processing during the second quarter valued at $28,000. Institutional investors and hedge funds 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.