Zacks Reiterates “Neutral” Rating for Automatic Data Processing (ADP)
Automatic Data Processing (NASDAQ:ADP)‘s stock had its “neutral” rating restated by Zacks in a research report issued to clients and investors on Thursday. They currently have a $84.00 price objective on the stock. Zacks‘s target price indicates a potential upside of 4.81% from the company’s current price.
Zacks’ analyst wrote, “Automatic Data Processing reported a dismal third-quarter, missing the Zacks Consensus Estimate on both the lines. The company provided optimistic outlook for 2014. We believe that the Dealer-services spin-off will help the company to focus more on its relatively fast growing PEO and Employer services segments. ADP is expected to perform better on the back of improved execution and higher client retention. Moreover, recovery in the job market is expected to help the company. Aggressive share buyback and higher dividends is shareholder friendly, in our view. However, volatile macroeconomic environment and lower interest rates are major concerns. The recent credit rating downgrades by Moody’s and S&P will remain an overhang on the stock. Thus, we prefer to remain Neutral on the stock and set a price target of $84.00.”
Automatic Data Processing (NASDAQ:ADP) traded down 0.40% on Thursday, hitting $80.145. 953,225 shares of the company’s stock traded hands. Automatic Data Processing has a 52 week low of $69.76 and a 52 week high of $83.82. The stock has a 50-day moving average of $79.17 and a 200-day moving average of $77.91. The company has a market cap of $38.638 billion and a P/E ratio of 26.83.
Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, April 30th. The company reported $1.06 earnings per share for the quarter, missing the analysts’ consensus estimate of $1.08 by $0.02. The company had revenue of $3.30 billion for the quarter, compared to the consensus estimate of $3.34 billion. During the same quarter last year, the company posted $0.99 earnings per share. Automatic Data Processing’s revenue was up 6.8% compared to the same quarter last year. On average, analysts predict that Automatic Data Processing will post $3.14 earnings per share for the current fiscal year.
In other Automatic Data Processing news, VP Michael C. Eberhard unloaded 2,743 shares of the stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $80.00, for a total transaction of $219,440.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.
Several other analysts have also recently commented on the stock. Analysts at Goldman Sachs reiterated a “neutral” rating on shares of Automatic Data Processing in a research note on Tuesday. Analysts at Barclays reiterated an “equal weight” rating on shares of Automatic Data Processing in a research note on Friday, June 27th. Six equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $82.43.
Automatic Data Processing, Inc (NASDAQ:ADP) is a provider of business outsourcing solutions.
To view Zacks’ full report, visit Zacks’ official website.
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