Automatic Data Processing (ADP) Stock Rating Lowered by Zacks Investment Research
Automatic Data Processing (NYSE:ADP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “ADP has outperformed the industry on a year-to-date basis. We expect investments in new initiatives will continue to weigh on the company’s near-term bottom-line results. Increasing competition is also a headwind. Moreover, continuing crticism from activist investor Bill Ackman is expected to management under pressure, which will remain an overhang on the stock. Nonetheless, the company’s higher revenue per client and a decent customer retention ratio place it in an advantageous position. Also, ADP holds a dominant position in the payroll processing and human capital management market, primarily due to its robust product portfolio.”
A number of other analysts have also recently issued reports on the company. BidaskClub cut Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Friday, September 15th. Barclays PLC cut Automatic Data Processing from an “overweight” rating to an “equal weight” rating and dropped their price objective for the stock from $110.00 to $105.00 in a report on Tuesday, July 18th. William Blair cut Automatic Data Processing from an “outperform” rating to a “market perform” rating in a report on Friday, July 21st. Deutsche Bank AG reissued a “hold” rating and set a $102.00 price objective on shares of Automatic Data Processing in a report on Monday, August 21st. Finally, Morgan Stanley cut Automatic Data Processing from an “equal weight” rating to an “underweight” rating and increased their price objective for the stock from $98.00 to $100.00 in a report on Thursday, August 3rd. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating and three have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $109.25.
Automatic Data Processing (NYSE:ADP) traded down 0.755% on Tuesday, reaching $113.715. The company had a trading volume of 1,014,645 shares. The stock’s 50-day moving average price is $108.98 and its 200-day moving average price is $104.75. The stock has a market capitalization of $50.53 billion and a P/E ratio of 29.536. Automatic Data Processing has a 12-month low of $85.48 and a 12-month high of $121.77.
Automatic Data Processing (NYSE:ADP) last issued its quarterly earnings data on Thursday, July 27th. The business services provider reported $0.65 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.02). The company had revenue of $3.06 billion for the quarter, compared to analysts’ expectations of $3.04 billion. Automatic Data Processing had a return on equity of 26.39% and a net margin of 8.67%. The business’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same period last year, the company posted $0.69 EPS. On average, equities research analysts anticipate that Automatic Data Processing will post $3.81 EPS for the current fiscal year.
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In other Automatic Data Processing news, VP Brock Albinson sold 3,663 shares of the firm’s stock in a transaction dated Friday, September 1st. The stock was sold at an average price of $106.54, for a total value of $390,256.02. Following the sale, the vice president now owns 6,287 shares of the company’s stock, valued at approximately $669,816.98. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Maria Black sold 631 shares of the firm’s stock in a transaction dated Saturday, September 2nd. The shares were sold at an average price of $106.64, for a total value of $67,289.84. Following the completion of the sale, the vice president now directly owns 10,550 shares in the company, valued at approximately $1,125,052. The disclosure for this sale can be found here. In the last ninety days, insiders sold 40,657 shares of company stock worth $4,457,476.
Several large investors have recently added to or reduced their stakes in the business. Curbstone Financial Management Corp raised its holdings in shares of Automatic Data Processing by 91.2% in the 3rd quarter. Curbstone Financial Management Corp now owns 5,420 shares of the business services provider’s stock valued at $593,000 after acquiring an additional 2,585 shares in the last quarter. Intl Fcstone Inc. purchased a new stake in shares of Automatic Data Processing in the 2nd quarter valued at about $1,699,000. Achmea Investment Management B.V. raised its holdings in shares of Automatic Data Processing by 152.4% in the 2nd quarter. Achmea Investment Management B.V. now owns 28,225 shares of the business services provider’s stock valued at $2,887,000 after acquiring an additional 17,043 shares in the last quarter. Farmers National Bank raised its holdings in shares of Automatic Data Processing by 4.0% during the 2nd quarter. Farmers National Bank now owns 1,917 shares of the business services provider’s stock valued at $196,000 after buying an additional 73 shares in the last quarter. Finally, Atlantic Trust LLC raised its holdings in shares of Automatic Data Processing by 12.2% during the 2nd quarter. Atlantic Trust LLC now owns 4,375 shares of the business services provider’s stock valued at $449,000 after buying an additional 475 shares in the last quarter.
Automatic Data Processing Company Profile
Automatic Data Processing, Inc (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services.
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