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, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
Automatic Data Processing Stock Up 0.6 %
ADP opened at $248.61 on Tuesday. Automatic Data Processing has a 1-year low of $192.26 and a 1-year high of $251.38. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.93. The stock has a market capitalization of $103.30 billion, a price-to-earnings ratio of 35.47, a P/E/G ratio of 2.56 and a beta of 0.84. The business has a 50 day moving average of $218.92 and a 200-day moving average of $216.35.
Automatic Data Processing (NASDAQ:ADP - Get Rating) last posted its quarterly earnings data on Wednesday, July 27th. The business services provider reported $1.50 earnings per share for the quarter, beating the consensus estimate of $1.47 by $0.03. Automatic Data Processing had a return on equity of 66.25% and a net margin of 17.87%. The company had revenue of $4.13 billion during the quarter, compared to analysts' expectations of $4.05 billion. During the same period in the prior year, the business earned $1.20 earnings per share. Automatic Data Processing's revenue for the quarter was up 10.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Automatic Data Processing will post 8.04 earnings per share for the current year.
Automatic Data Processing Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Saturday, October 1st. Stockholders of record on Friday, September 9th will be given a $1.04 dividend. The ex-dividend date of this dividend is Thursday, September 8th. This represents a $4.16 annualized dividend and a dividend yield of 1.67%. Automatic Data Processing's dividend payout ratio is 59.34%.
Wall Street Analysts Forecast Growth
ADP has been the subject of a number of research analyst reports. Mizuho increased their price target on shares of Automatic Data Processing from $250.00 to $257.00 and gave the stock a "buy" rating in a research report on Monday, August 1st. Citigroup increased their price target on shares of Automatic Data Processing from $212.00 to $230.00 in a research report on Monday, May 2nd. Wolfe Research dropped their price objective on Automatic Data Processing from $235.00 to $210.00 in a report on Wednesday, July 20th. Deutsche Bank Aktiengesellschaft increased their price objective on Automatic Data Processing from $203.00 to $234.00 in a report on Thursday, April 28th. Finally, Morgan Stanley increased their price objective on Automatic Data Processing from $235.00 to $245.00 and gave the stock an "equal weight" rating in a report on Thursday, July 28th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and two have given a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $232.20.
Insider Buying and Selling
In related news, VP Augusto J. Blanchard sold 567 shares of the firm's stock in a transaction on Tuesday, July 5th. The stock was sold at an average price of $210.64, for a total value of $119,432.88. Following the completion of the transaction, the vice president now directly owns 4,238 shares of the company's stock, valued at $892,692.32. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.34% of the stock is owned by company insiders.