Automatic Data Processing, Inc. (NASDAQ:ADP) Stock Has Average Target Price of $276.36

Key Points

• Analyst sentiment is largely neutral: Twelve analysts rate ADP an average “Hold,” with eight holds, three buys and one sell. The average 12-month price target is $276.36, below the stock’s reported $304.16 opening price.
• ADP exceeded quarterly expectations: The company reported $2.64 in EPS and $5.47 billion in revenue, surpassing consensus estimates, while revenue grew 6.8% year over year. Analysts forecast approximately $12.27 in EPS for the current fiscal year.
• Shareholders continue to receive income: ADP paid a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.2% yield. Institutional investors own 80.03% of the stock, while insiders sold $9.45 million worth of shares during the last quarter.

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) have earned an average rating of "Hold" from the twelve analysts that are currently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, eight have issued a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $276.36.

A number of research firms recently weighed in on ADP. Guggenheim boosted their target price on Automatic Data Processing from $300.00 to $340.00 and gave the stock a "buy" rating in a research report on Friday. BMO Capital Markets increased their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. TD Cowen increased their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. Citigroup lifted their price target on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Finally, Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president owned 9,660 shares in the company, valued at $2,565,889.20. This trade represents a 19.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian Michaud sold 120 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares of the company's stock, valued at $5,158,227.40. This represents a 0.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,773 shares of company stock worth $9,450,629 in the last quarter. 0.15% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Thrive Wealth Management LLC grew its position in Automatic Data Processing by 3.5% during the 2nd quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider's stock worth $243,000 after acquiring an additional 37 shares during the last quarter. Tanager Wealth Management LLP lifted its position in Automatic Data Processing by 4.1% in the third quarter. Tanager Wealth Management LLP now owns 971 shares of the business services provider's stock valued at $251,000 after purchasing an additional 38 shares during the last quarter. Aull & Monroe Investment Management Corp lifted its position in Automatic Data Processing by 0.3% in the third quarter. Aull & Monroe Investment Management Corp now owns 15,668 shares of the business services provider's stock valued at $4,043,000 after purchasing an additional 44 shares during the last quarter. Guardian Partners Inc. lifted its position in Automatic Data Processing by 0.9% in the first quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider's stock valued at $1,044,000 after purchasing an additional 47 shares during the last quarter. Finally, Mascoma Wealth Management LLC boosted its stake in shares of Automatic Data Processing by 3.2% during the third quarter. Mascoma Wealth Management LLC now owns 1,570 shares of the business services provider's stock valued at $405,000 after purchasing an additional 49 shares during the period. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Trading Down 1.2%

NASDAQ ADP opened at $304.16 on Friday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock's 50-day simple moving average is $275.45 and its two-hundred day simple moving average is $245.48. Automatic Data Processing has a twelve month low of $188.16 and a twelve month high of $309.40. The company has a market capitalization of $120.52 billion, a price-to-earnings ratio of 27.80, a PEG ratio of 2.75 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion during 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 company's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts forecast that Automatic Data Processing will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were issued a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.2%. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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