Automatic Data Processing (NASDAQ:ADP) Stock Rating Lowered by Bank of America

Automatic Data Processing (NASDAQ:ADP) was downgraded by stock analysts at Bank of America from a “buy” rating to a “neutral” rating in a research note issued on Wednesday, The Fly reports.

A number of other research analysts also recently issued reports on the stock. ValuEngine downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Thursday, August 1st. Robert W. Baird boosted their price target on shares of Automatic Data Processing from $167.00 to $178.00 and gave the company a “neutral” rating in a research note on Thursday, August 1st. BidaskClub downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Wednesday. Cowen assumed coverage on shares of Automatic Data Processing in a report on Wednesday. They set an “outperform” rating for the company. Finally, Morgan Stanley boosted their target price on shares of Automatic Data Processing from $150.00 to $174.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 15th. Ten research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $174.00.

Shares of ADP stock opened at $164.33 on Wednesday. The business’s 50 day simple moving average is $167.58 and its 200 day simple moving average is $162.51. Automatic Data Processing has a one year low of $121.40 and a one year high of $174.50. The stock has a market capitalization of $72.92 billion, a PE ratio of 30.15, a PEG ratio of 2.10 and a beta of 0.90. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, July 31st. The business services provider reported $1.14 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.01. The business had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.50 billion. Automatic Data Processing had a net margin of 16.17% and a return on equity of 47.48%. Automatic Data Processing’s quarterly revenue was up 5.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.99 earnings per share. As a group, research analysts expect that Automatic Data Processing will post 6.16 earnings per share for the current year.

In other Automatic Data Processing news, VP Dermot J. O’brien sold 1,771 shares of the firm’s stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $162.04, for a total value of $286,972.84. Following the completion of the transaction, the vice president now owns 14,896 shares in the company, valued at approximately $2,413,747.84. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Brock Albinson sold 6,683 shares of the stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $167.87, for a total transaction of $1,121,875.21. Following the completion of the sale, the vice president now directly owns 6,302 shares in the company, valued at $1,057,916.74. The disclosure for this sale can be found here. Insiders own 0.33% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. boosted its stake in Automatic Data Processing by 1,971.2% during the first quarter. BlackRock Inc. now owns 29,631,769 shares of the business services provider’s stock valued at $3,033,995,000 after buying an additional 28,201,085 shares during the period. Oregon Public Employees Retirement Fund increased its holdings in shares of Automatic Data Processing by 18,918.6% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 23,462,482 shares of the business services provider’s stock worth $179,000 after buying an additional 23,339,116 shares during the last quarter. Lunia Capital LP increased its holdings in shares of Automatic Data Processing by 14,251.9% in the 4th quarter. Lunia Capital LP now owns 18,367,683 shares of the business services provider’s stock worth $18,368,000 after buying an additional 18,239,702 shares during the last quarter. Pershing Square Capital Management L.P. raised its position in shares of Automatic Data Processing by 402.5% during the 3rd quarter. Pershing Square Capital Management L.P. now owns 8,798,442 shares of the business services provider’s stock valued at $961,846,000 after buying an additional 7,047,575 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its position in shares of Automatic Data Processing by 213.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,639,847 shares of the business services provider’s stock valued at $1,301,682,000 after buying an additional 5,880,242 shares in the last quarter. Hedge funds and other institutional investors own 80.22% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

Further Reading: What are some reasons analysts would give stocks a buy rating?

The Fly

Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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