Automatic Data Processing, Inc. (NASDAQ:ADP) Given Consensus Rating of “Hold” by Analysts

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have earned a consensus rating of “Hold” from the thirteen ratings firms that are presently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month price objective among analysts that have covered the stock in the last year is $306.4167.

A number of analysts recently commented on the company. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Citigroup began coverage on shares of Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target for the company. Wells Fargo & Company dropped their price objective on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. UBS Group cut 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 report on Wednesday, September 17th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th.

Institutional Investors Weigh In On Automatic Data Processing

A number of hedge funds have recently made changes to their positions in the company. Activest Wealth Management lifted its position in Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock valued at $25,000 after purchasing an additional 78 shares during the last quarter. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Automatic Data Processing in the 2nd quarter worth about $26,000. Harbor Asset Planning Inc. purchased a new stake in shares of Automatic Data Processing during the 2nd quarter valued at about $26,000. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $25,000. Finally, Howard Hughes Medical Institute bought a new position in shares of Automatic Data Processing in the 2nd quarter valued at about $27,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

Shares of ADP opened at $258.84 on Monday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62. The business’s 50 day moving average price is $260.77 and its 200-day moving average price is $286.16. Automatic Data Processing has a 52 week low of $247.18 and a 52 week high of $329.93. The stock has a market cap of $104.69 billion, a P/E ratio of 25.55 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The company had revenue of $5.18 billion for the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the previous year, the business posted $2.33 EPS. Automatic Data Processing’s 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 research analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 1st. Shareholders of record on Friday, December 12th will be issued a dividend of $1.70 per share. This is an increase from Automatic Data Processing’s previous quarterly dividend of $1.54. The ex-dividend date of this dividend is Friday, December 12th. This represents a $6.80 dividend on an annualized basis and a yield of 2.6%. Automatic Data Processing’s payout ratio is 67.13%.

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.