Automatic Data Processing (NASDAQ:ADP) Earns Underperform Rating from Jefferies Financial Group

Automatic Data Processing (NASDAQ:ADP)‘s stock had its “underperform” rating restated by equities researchers at Jefferies Financial Group in a report issued on Tuesday, Marketbeat.com reports. They presently have a $230.00 target price on the business services provider’s stock, down from their prior target price of $245.00. Jefferies Financial Group’s price target points to a potential downside of 13.36% from the company’s current price.

Other analysts have also recently issued research reports about the stock. UBS Group reduced their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, September 17th. Dbs Bank raised shares of Automatic Data Processing to a “hold” rating in a report on Thursday, August 21st. Citigroup assumed coverage on Automatic Data Processing in a report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 8th. Finally, JPMorgan Chase & Co. cut their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and an average price target of $306.42.

Automatic Data Processing Trading Up 1.3%

Shares of ADP stock opened at $265.47 on Tuesday. The business’s 50 day moving average is $264.30 and its two-hundred day moving average is $289.52. Automatic Data Processing has a twelve month low of $247.18 and a twelve month high of $329.93. The company has a market capitalization of $107.37 billion, a P/E ratio of 26.21 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, topping the consensus estimate of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the prior year, the business earned $2.33 earnings per share. The company’s quarterly revenue was up 7.1% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities analysts forecast that Automatic Data Processing will post 9.93 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Activest Wealth Management grew its stake in Automatic Data Processing by 2,600.0% in the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock valued at $25,000 after acquiring an additional 78 shares during the last quarter. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $25,000. Harbor Asset Planning Inc. purchased a new stake in shares of Automatic Data Processing in the second quarter valued at about $26,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $26,000. Finally, Howard Hughes Medical Institute purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $27,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.