Automatic Data Processing Coverage Initiated by Analysts at Morgan Stanley (ADP)
Research analysts at Morgan Stanley assumed coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a report released on Thursday, AnalystRatings.NET reports. The firm set an “equal weight” rating and a $82.00 price target on the stock. Morgan Stanley’s price target indicates a potential upside of 3.37% from the stock’s previous close.
The analysts wrote, “The payroll processors’ business models are highly stable with an opportunity to grow off trends in HR outsourcing. However, dividend and buyback yields are at multi-year lows, and PAYX is at risk of being unable to grow as quickly as it did before. We prefer ADP (EW) over PAYX (UW).”
Shares of Automatic Data Processing (NASDAQ:ADP) traded down 0.54% during mid-day trading on Thursday, hitting $78.90. The stock had a trading volume of 476,819 shares. Automatic Data Processing has a 52-week low of $55.99 and a 52-week high of $83.82. The stock has a 50-day moving average of $76.89 and a 200-day moving average of $72.76. The company has a market cap of $37.984 billion and a P/E ratio of 26.98.
Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 30th. The company reported $0.68 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.66 by $0.02. The company had revenue of $2.84 billion for the quarter, compared to the consensus estimate of $2.81 billion. During the same quarter in the prior year, the company posted $0.62 earnings per share. The company’s quarterly revenue was up 7.7% on a year-over-year basis. On average, analysts predict that Automatic Data Processing will post $3.17 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, January 1st. Shareholders of record on Friday, December 13th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 2.42%. The ex-dividend date is Wednesday, December 11th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.44.
A number of other firms have also recently commented on ADP. Analysts at BMO Capital Markets reiterated an “outperform” rating on shares of Automatic Data Processing in a research note to investors on Thursday, October 31st. They now have a $84.00 price target on the stock, up previously from $78.00. Separately, analysts at UBS AG initiated coverage on shares of Automatic Data Processing in a research note to investors on Tuesday, September 24th. They set a “neutral” rating on the stock. Finally, analysts at RBC Capital downgraded shares of Automatic Data Processing from an “outperform” rating to a “sector perform” rating in a research note to investors on Tuesday, September 24th. They now have a $73.00 price target on the stock, down previously from $77.00. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, six have given a hold rating and eight have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and an average target price of $72.42.
In other Automatic Data Processing news, Director Eric Fast sold 5,000 shares of the stock in a transaction dated Tuesday, November 26th. The stock was sold at an average price of $80.54, for a total value of $402,700.00. Following the sale, the director now directly owns 23,255 shares of the company’s stock, valued at approximately $1,872,958. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
Automatic Data Processing, Inc (NASDAQ:ADP) is a provider of business outsourcing solutions.
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