Automatic Data Processing (NASDAQ:ADP) Issues FY 2025 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 9.910-10.010 for the period, compared to the consensus estimate of 9.940. The company issued revenue guidance of $20.4 billion-$20.5 billion, compared to the consensus revenue estimate of $20.4 billion.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock traded up $4.88 on Friday, reaching $303.57. The stock had a trading volume of 1,720,848 shares, compared to its average volume of 1,687,165. The business's 50 day moving average is $298.19 and its two-hundred day moving average is $298.69. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.59. Automatic Data Processing has a 1 year low of $231.27 and a 1 year high of $322.84. The company has a market cap of $123.69 billion, a P/E ratio of 31.65, a price-to-earnings-growth ratio of 3.62 and a beta of 0.74.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, April 30th. The business services provider reported $3.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.09. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%. The business had revenue of $5.55 billion for the quarter, compared to analysts' expectations of $5.49 billion. During the same period in the prior year, the company posted $2.88 EPS. The business's revenue for the quarter was up 5.7% compared to the same quarter last year. As a group, research analysts anticipate that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 1st. Investors of record on Friday, June 13th will be given a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a yield of 2.03%. The ex-dividend date is Friday, June 13th. Automatic Data Processing's payout ratio is 64.23%.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of research analyst reports. StockNews.com downgraded Automatic Data Processing from a "buy" rating to a "hold" rating in a research report on Wednesday, February 5th. TD Securities lifted their target price on shares of Automatic Data Processing from $296.00 to $298.00 and gave the company a "hold" rating in a research report on Thursday. Stifel Nicolaus boosted their price target on shares of Automatic Data Processing to $305.00 and gave the stock a "buy" rating in a research note on Friday. Royal Bank of Canada restated a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a research report on Thursday. Finally, Jefferies Financial Group upped their target price on shares of Automatic Data Processing from $290.00 to $305.00 and gave the stock a "hold" rating in a research report on Thursday, January 30th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $303.55.

Insiders Place Their Bets

In other news, VP Brian L. Michaud sold 1,500 shares of the firm's stock in a transaction that occurred on Tuesday, April 1st. The shares were sold at an average price of $305.38, for a total value of $458,070.00. Following the transaction, the vice president now owns 12,073 shares in the company, valued at approximately $3,686,852.74. This trade represents a 11.05 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Jonathan S. Lehberger sold 2,324 shares of the company's stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $303.30, for a total transaction of $704,869.20. Following the sale, the vice president now owns 3,063 shares of the company's stock, valued at $929,007.90. This represents a 43.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,775 shares of company stock valued at $1,447,893 over the last three months. Insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On Automatic Data Processing

An institutional investor recently raised its position in Automatic Data Processing stock. Brighton Jones LLC increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 92.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 10,026 shares of the business services provider's stock after purchasing an additional 4,808 shares during the quarter. Brighton Jones LLC's holdings in Automatic Data Processing were worth $2,935,000 as of its most recent filing with the Securities and Exchange Commission (SEC). 80.03% of the stock is owned by institutional investors and hedge funds.

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.