Weiss Ratings Reaffirms Buy (B) Rating for Automatic Data Processing (NASDAQ:ADP)

Key Points

• Weiss Ratings has reaffirmed a Buy (B) rating for Automatic Data Processing (NASDAQ:ADP), indicating a positive outlook for the company's stock.
• Automatic Data Processing reported a quarterly EPS of $2.26, exceeding analysts' expectations and showing a 6.3% year-over-year revenue increase.
• Institutional investors hold 80.03% of ADP's stock, with Vanguard Group and State Street Corp boosting their stakes in the company during the second quarter.

Automatic Data Processing (NASDAQ:ADP - Get Free Report)'s stock had its "buy (b)" rating reissued by equities researchers at Weiss Ratings in a report released on Wednesday,Weiss Ratings reports.

Several other research firms have also weighed in on ADP. Stifel Nicolaus increased their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. UBS Group cut 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 report on Wednesday, September 17th. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a report on Thursday, July 10th. Mizuho raised their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. Finally, Morgan Stanley raised their price objective on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Three investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $316.70.

Automatic Data Processing Trading Down 0.8%

ADP stock traded down $2.24 during midday trading on Wednesday, reaching $290.70. The company's stock had a trading volume of 1,410,051 shares, compared to its average volume of 1,757,444. Automatic Data Processing has a 52 week low of $272.62 and a 52 week high of $329.93. The stock has a market cap of $117.76 billion, a PE ratio of 29.13, a price-to-earnings-growth ratio of 2.66 and a beta of 0.82. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. The business's 50-day simple moving average is $298.44 and its 200-day simple moving average is $303.34.

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

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 4,614 shares of the business's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $1,368,373.98. Following the completion of the sale, the vice president owned 17,536 shares of the company's stock, valued at $5,200,651.52. The trade was a 20.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Michael A. Bonarti sold 8,728 shares of the business's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the completion of the transaction, the vice president owned 80,531 shares of the company's stock, valued at $24,032,866.33. The trade was a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 52,516 shares of company stock worth $15,632,410. Company insiders own 0.20% of the company's stock.

Institutional Investors Weigh In On Automatic Data Processing

A number of institutional investors have recently modified their holdings of ADP. Vanguard Group Inc. boosted its stake in Automatic Data Processing by 0.9% during the second quarter. Vanguard Group Inc. now owns 41,300,182 shares of the business services provider's stock worth $12,736,976,000 after acquiring an additional 350,298 shares in the last quarter. State Street Corp raised its holdings in Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider's stock worth $5,820,445,000 after buying an additional 187,415 shares during the last quarter. Geode Capital Management LLC raised its holdings in Automatic Data Processing by 3.1% during the second quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider's stock worth $3,511,698,000 after buying an additional 345,798 shares during the last quarter. Laurel Wealth Advisors LLC raised its holdings in Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider's stock worth $1,439,845,000 after buying an additional 4,653,304 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in Automatic Data Processing by 13.5% during the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider's stock worth $1,411,449,000 after buying an additional 544,968 shares during the last quarter. 80.03% of the stock is owned by institutional investors.

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.

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