Automatic Data Processing (ADP) – Investment Analysts’ Weekly Ratings Changes

A number of research firms have changed their ratings and price targets for Automatic Data Processing (NASDAQ: ADP):

  • 1/13/2018 – Automatic Data Processing was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating.
  • 1/12/2018 – Automatic Data Processing had its “neutral” rating reaffirmed by analysts at Citigroup Inc. They now have a $118.00 price target on the stock, up previously from $110.00.
  • 1/10/2018 – Automatic Data Processing was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “ADP is a provider of human capital management solutions and integrated computing solutions to vehicle dealers. The stock has outperformed the industry over the past one year. The company also raised fiscal 2018 guidance for revenues and earnings. We note that ADP holds a dominant position in the payroll processing and human capital management (HCM) market, primarily owing to its robust product portfolio. Moreover, activist investor Bill Ackman recently failed to get a position in the company's board. The overwhelming shareholder support for the existing board reflects strong confidence over management’s strategies, which is expected to drive share price in the near term. Nevertheless, we expect investments in new initiatives will continue to weigh on the company’s bottom-line results. Moreover, rising unemployment levels will negatively impact the company. Further, increasing competition is a major headwind.”
  • 1/5/2018 – Automatic Data Processing was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $133.00 price target on the stock. According to Zacks, “ADP is a provider of human capital management solutions and integrated computing solutions to vehicle dealers. We note that the stock has outperformed the industry over the past one year. The company also raised fiscal 2018 guidance for revenues and earnings. We note that ADP holds a dominant position in the payroll processing and human capital management (HCM) market, primarily owing to its robust product portfolio. Moreover, activist investor Bill Ackman recently failed to get a position in the company's board. The overwhelming shareholder support for the existing board reflects strong confidence over management’s strategies, which is expected to drive share price in the near term. Nevertheless, we expect investments in new initiatives will continue to weigh on the company’s bottom-line results. Further, increasing competition is a major headwind.”
  • 1/4/2018 – Automatic Data Processing was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “ADP is a provider of human capital management solutions and integrated computing solutions to vehicle dealers. We note that the stock has outperformed the industry over the past one year. The company also raised fiscal 2018 guidance for revenues and earnings. We note that ADP holds a dominant position in the payroll processing and human capital management (HCM) market, primarily owing to its robust product portfolio. Moreover, activist investor Bill Ackman recently failed to get a position in the company's board. The overwhelming shareholder support for the existing board reflects strong confidence over management’s strategies, which is expected to drive share price in the near term. Nevertheless, we expect investments in new initiatives will continue to weigh on the company’s bottom-line results. Further, increasing competition is a major headwind.”
  • 12/11/2017 – Automatic Data Processing was upgraded by analysts at Goldman Sachs Group Inc from a “neutral” rating to a “buy” rating. They now have a $135.00 price target on the stock, up previously from $116.02.
  • 12/5/2017 – Automatic Data Processing was upgraded by analysts at Bank of America Corp from a “neutral” rating to a “buy” rating.
  • 12/2/2017 – Automatic Data Processing was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating.

Shares of Automatic Data Processing (NASDAQ:ADP) traded up $0.92 during trading hours on Wednesday, reaching $119.39. 2,099,200 shares of the company were exchanged, compared to its average volume of 1,860,140. The company has a market capitalization of $54,060.00, a PE ratio of 30.30, a price-to-earnings-growth ratio of 2.93 and a beta of 0.85. Automatic Data Processing has a 1 year low of $94.11 and a 1 year high of $121.77. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.51.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Thursday, November 2nd. The business services provider reported $0.91 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.85 by $0.06. The firm had revenue of $3.08 billion during the quarter, compared to analysts’ expectations of $3.06 billion. Automatic Data Processing had a net margin of 14.08% and a return on equity of 42.34%. The firm’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period last year, the firm posted $0.86 earnings per share. research analysts predict that Automatic Data Processing will post 3.91 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Sunday, April 1st. Investors of record on Friday, March 9th will be issued a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a yield of 2.11%. The ex-dividend date is Thursday, March 8th. Automatic Data Processing’s payout ratio is 63.96%.

In related news, insider Michael A. Bonarti sold 3,900 shares of the firm’s stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $116.03, for a total value of $452,517.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Donald Weinstein sold 2,275 shares of the firm’s stock in a transaction that occurred on Tuesday, January 2nd. The stock was sold at an average price of $116.03, for a total transaction of $263,968.25. Following the completion of the transaction, the vice president now directly owns 27,399 shares of the company’s stock, valued at approximately $3,179,105.97. The disclosure for this sale can be found here. Insiders have sold 115,505 shares of company stock valued at $13,612,788 over the last 90 days. 0.25% of the stock is currently owned by insiders.

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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