NASDAQ:ADP

Automatic Data Processing (ADP) Stock Price, News & Analysis

$245.50
-1.34 (-0.54%)
(As of 12:14 PM ET)
Today's Range
$244.32
$246.50
50-Day Range
$241.49
$255.87
52-Week Range
$201.46
$256.84
Volume
314,441 shs
Average Volume
1.79 million shs
Market Capitalization
$100.85 billion
P/E Ratio
28.58
Dividend Yield
2.28%
Price Target
$254.58

Automatic Data Processing MarketRank™ Stock Analysis

Analyst Rating
Hold
2.00 Rating Score
Upside/​Downside
3.1% Upside
$254.58 Price Target
Short Interest
Healthy
1.12% of Float Sold Short
Dividend Strength
Strong
Based on Four Factors
Sustainability
-0.22
Upright™ Environmental Score
News Sentiment
0.98mentions of Automatic Data Processing in the last 14 days
Based on 13 Articles This Week
Insider Trading
Selling Shares
$3.74 M Sold Last Quarter
Proj. Earnings Growth
9.52%
From $9.14 to $10.01 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

4.50 out of 5 stars

Business Services Sector

23rd out of 306 stocks

Data Processing & Preparation Industry

7th out of 61 stocks

ADP stock logo

About Automatic Data Processing Stock (NASDAQ:ADP)

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. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.

ADP Stock Price History

ADP Stock News Headlines

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Behind closed doors, at least 41 major US banks have signed up to a strange new crypto project...
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ADP Apr 2024 200.000 put
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Behind closed doors, at least 41 major US banks have signed up to a strange new crypto project...
Automatic Data Processing Inc (ADP.SG)
ADP Declares Regular Quarterly Dividend
USD ahead of key data releases this week
3 Dividend Stocks Targeting 50% Upside by 2028
Automatic Data Processing: A Great DGI Stock
See More Headlines
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Company Calendar

Last Earnings
1/31/2024
Ex-Dividend for 4/1 Dividend
3/07/2024
Dividend Payable
4/01/2024
Today
4/24/2024
Next Earnings (Confirmed)
5/01/2024
Fiscal Year End
6/30/2024

Industry, Sector and Symbol

Industry
Data processing & preparation
Sub-Industry
Data Processing & Outsourced Services
Current Symbol
NASDAQ:ADP
CUSIP
05301510
CIK
8670
Employees
63,000
Year Founded
1949

Price Target and Rating

Average Stock Price Target
$254.58
High Stock Price Target
$280.00
Low Stock Price Target
$213.00
Potential Upside/Downside
+3.1%
Consensus Rating
Hold
Rating Score (0-4)
2.00
Research Coverage
10 Analysts

Profitability

Net Income
$3.41 billion
Pretax Margin
24.78%

Debt

Sales & Book Value

Annual Sales
$18.01 billion
Cash Flow
$12.09 per share
Book Value
$8.49 per share

Miscellaneous

Free Float
409,723,000
Market Cap
$101.40 billion
Optionable
Optionable
Beta
0.78

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Should I Buy Automatic Data Processing Stock? ADP Pros and Cons Explained

Pros

Here are some ways that investors could benefit from investing in Automatic Data Processing, Inc.:

  • Automatic Data Processing has shown consistent growth in its cloud-based human capital management solutions, indicating a strong market presence and potential for future expansion.
  • The company's strategic platforms and HR outsourcing solutions in the Employer Services segment provide diversified revenue streams and stability.
  • Recent institutional investments in ADP by reputable firms like Creative Planning and OFI Invest Asset Management signal confidence in the company's performance and growth prospects.
  • VPs of ADP have been selling shares at higher prices, suggesting positive market sentiment and potential for stock price appreciation.
  • Automatic Data Processing's focus on innovation and technology in its services positions it well to adapt to changing market demands and stay competitive.

Cons

Investors should be bearish about investing in Automatic Data Processing, Inc. for these reasons:

  • The high percentage of ownership by hedge funds and institutional investors may lead to increased volatility in the stock price due to large-scale trading activities.
  • Market uncertainties and economic downturns could impact ADP's business services sector, potentially affecting its financial performance and stock valuation.
  • Competitive pressures in the cloud-based HR solutions market could challenge ADP's market share and profitability in the long term.
  • Recent insider selling activities by VPs of ADP may raise concerns about the company's internal outlook or future performance expectations.
  • Fluctuations in the overall stock market or changes in regulatory environments could influence ADP's operations and financial results.
These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Wednesday, April 10, 2024. Please send any questions or comments about these Automatic Data Processing pros and cons to contact@marketbeat.com.

ADP Stock Analysis - Frequently Asked Questions

Should I buy or sell Automatic Data Processing stock right now?

10 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Automatic Data Processing in the last twelve months. There are currently 2 sell ratings, 6 hold ratings and 2 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "hold" ADP shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in ADP, but not buy additional shares or sell existing shares.
View ADP analyst ratings
or view top-rated stocks.

What is Automatic Data Processing's stock price target for 2024?

10 Wall Street research analysts have issued 12 month target prices for Automatic Data Processing's shares. Their ADP share price targets range from $213.00 to $280.00. On average, they expect the company's stock price to reach $254.58 in the next twelve months. This suggests a possible upside of 3.1% from the stock's current price.
View analysts price targets for ADP
or view top-rated stocks among Wall Street analysts.

How have ADP shares performed in 2024?

Automatic Data Processing's stock was trading at $232.97 at the beginning of 2024. Since then, ADP stock has increased by 6.0% and is now trading at $246.84.
View the best growth stocks for 2024 here
.

Are investors shorting Automatic Data Processing?

Automatic Data Processing saw a drop in short interest in the month of March. As of March 31st, there was short interest totaling 4,560,000 shares, a drop of 12.1% from the March 15th total of 5,190,000 shares. Based on an average daily volume of 1,870,000 shares, the days-to-cover ratio is presently 2.4 days. Approximately 1.1% of the company's shares are short sold.
View Automatic Data Processing's Short Interest
.

When is Automatic Data Processing's next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Wednesday, May 1st 2024.
View our ADP earnings forecast
.

How can I listen to Automatic Data Processing's earnings call?

Automatic Data Processing will be holding an earnings conference call on Wednesday, May 1st at 8:30 AM Eastern. Interested parties can register for or listen to the call using this link.

How were Automatic Data Processing's earnings last quarter?

Automatic Data Processing, Inc. (NASDAQ:ADP) posted its quarterly earnings results on Wednesday, January, 31st. The business services provider reported $2.13 earnings per share for the quarter, beating the consensus estimate of $2.10 by $0.03. The business services provider earned $4.67 billion during the quarter, compared to the consensus estimate of $4.65 billion. Automatic Data Processing had a trailing twelve-month return on equity of 95.22% and a net margin of 19.14%. Automatic Data Processing's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter last year, the firm earned $1.96 earnings per share.
Read the conference call transcript
.

How often does Automatic Data Processing pay dividends? What is the dividend yield for Automatic Data Processing?

Automatic Data Processing declared a quarterly dividend on Wednesday, April 3rd. Investors of record on Friday, June 14th will be paid a dividend of $1.40 per share on Monday, July 1st. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.27%. The ex-dividend date of this dividend is Friday, June 14th.
Read our dividend analysis for ADP
.

Is Automatic Data Processing a good dividend stock?

Automatic Data Processing (NASDAQ:ADP) pays an annual dividend of $5.60 per share and currently has a dividend yield of 2.27%. The company has been increasing its dividend for 48 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. The dividend payout ratio is 65.19%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, ADP will have a dividend payout ratio of 55.94% next year. This indicates that the company will be able to sustain or increase its dividend.
Read our dividend analysis for ADP.

What guidance has Automatic Data Processing issued on next quarter's earnings?

Automatic Data Processing updated its FY24 earnings guidance on Wednesday, January, 31st. The company provided earnings per share (EPS) guidance of $9.05-9.22 for the period, compared to the consensus EPS estimate of $9.12. The company issued revenue guidance of $19.09-19.27 billion, compared to the consensus revenue estimate of $19.14 billion.

What is Carlos A. Rodriguez's approval rating as Automatic Data Processing's CEO?

5,336 employees have rated Automatic Data Processing Chief Executive Officer Carlos A. Rodriguez on Glassdoor.com. Carlos A. Rodriguez has an approval rating of 90% among the company's employees.

What other stocks do shareholders of Automatic Data Processing own?

Based on aggregate information from My MarketBeat watchlists, some companies that other Automatic Data Processing investors own include Johnson & Johnson (JNJ), Cisco Systems (CSCO), Intel (INTC), Verizon Communications (VZ), Procter & Gamble (PG), AT&T (T), AbbVie (ABBV), McDonald's (MCD), Walmart (WMT) and Home Depot (HD).

Who are Automatic Data Processing's major shareholders?

Automatic Data Processing's stock is owned by a variety of retail and institutional investors. Top institutional investors include Sumitomo Mitsui Trust Holdings Inc. (0.26%), Raymond James & Associates (0.23%), Loring Wolcott & Coolidge Fiduciary Advisors LLP MA (0.16%), Assenagon Asset Management S.A. (0.09%), Fifth Third Bancorp (0.08%) and Raymond James Financial Services Advisors Inc. (0.07%). Insiders that own company stock include Alexander Quevedo, Augusto J Blanchard, Carlos A Rodriguez, Christopher D'ambrosio, David Kwon, Deborah L Dyson, Don Mcguire, Donald Weinstein, James T Sperduto, John Ayala, Joseph Desilva, Laura G Brown, Maria Black, Michael A Bonarti, Sreenivasa Kutam and Stuart Sackman.
View institutional ownership trends
.

How do I buy shares of Automatic Data Processing?

Shares of ADP stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Does Automatic Data Processing have any subsidiaries?
The following companies are subsidiares of Automatic Data Processing: ADP Atlantic, ADP Benefits Services KY, ADP Brasil Ltda, ADP Broker-Dealer Inc, ADP Canada Co., ADP Employer Services GmbH, ADP Europe SAS, ADP France SAS, ADP GSI France SAS, ADP GlobalView B.V., ADP Indemnity, ADP International Services BV, ADP LLC, ADP MasterTax, ADP Pacific, ADP Payroll Services, ADP Private Limited, ADP Screening and Selection Services, ADP Tax Services, ADP Technology Services, ADP TotalSource CO XXI, ADP TotalSource CO XXII, ADP TotalSource FL XVI, ADP TotalSource FL XXIX, ADP TotalSource Group, ADP TotalSource I, ADP TotalSource of CO XXIII, Automatic Data Processing Insurance Agency, Automatic Data Processing Limited, Automatic Data Processing Limited (UK), Celergo, Global Cash Card, Ma Foi Consulting Solutions Ltd., Payroll S.A., PhyLogic Healthcare, SHPS Inc., The Marcus Buckingham Company, The RightThing, Wallace, and Work Market.
Read More
This page (NASDAQ:ADP) was last updated on 4/24/2024 by MarketBeat.com Staff

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