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.
Wall Street Analyst Weigh In
ADP has been the subject of several recent analyst reports. Barclays upped their price target on Automatic Data Processing from $238.00 to $257.00 and gave the stock an "overweight" rating in a research note on Monday, May 2nd. Wolfe Research reduced their price target on shares of Automatic Data Processing from $235.00 to $210.00 in a report on Wednesday, July 20th. Mizuho boosted 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 note on Monday, August 1st. Cowen raised their price objective on Automatic Data Processing from $225.00 to $230.00 in a research report on Thursday, July 28th. Finally, Citigroup boosted their target price on Automatic Data Processing from $212.00 to $230.00 in a research report on Monday, May 2nd. One 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 stock presently has a consensus rating of "Hold" and an average target price of $232.20.
Automatic Data Processing Trading Up 0.8 %
NASDAQ:ADP traded up $1.91 during mid-day trading on Monday, hitting $249.11. 32,043 shares of the stock traded hands, compared to its average volume of 1,881,089. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.93. Automatic Data Processing has a 52 week low of $192.26 and a 52 week high of $248.96. The stock has a market capitalization of $104.06 billion, a price-to-earnings ratio of 35.26, a PEG ratio of 2.56 and a beta of 0.84. The firm's 50 day moving average is $218.44 and its two-hundred day moving average is $216.12.
Automatic Data Processing (NASDAQ:ADP - Get Rating) last released its earnings results on Wednesday, July 27th. The business services provider reported $1.50 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of $4.13 billion for the quarter, compared to analysts' expectations of $4.05 billion. During the same quarter in the prior year, the firm posted $1.20 earnings per share. The company's quarterly revenue was up 10.5% on a year-over-year basis. On average, equities research analysts predict that Automatic Data Processing will post 8.04 earnings per share for the current year.
Automatic Data Processing Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Saturday, October 1st. Stockholders of record on Friday, September 9th will be given a dividend of $1.04 per share. The ex-dividend date 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 (DPR) is 59.34%.
Insider Transactions at Automatic Data Processing
In other Automatic Data Processing news, VP Augusto J. Blanchard sold 567 shares of the company's stock in a transaction dated Tuesday, July 5th. The shares were sold at an average price of $210.64, for a total value of $119,432.88. Following the transaction, the vice president now directly owns 4,238 shares in the company, valued at approximately $892,692.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.34% of the company's stock.