Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Average Recommendation of “Hold” from Brokerages

Automatic Data Processing, Inc. (NASDAQ:ADP) has received a consensus recommendation of “Hold” from the thirteen brokerages that are covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $290.00.

Several equities analysts have recently commented on the company. Cantor Fitzgerald began coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Citigroup cut their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Wells Fargo & Company decreased their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. JPMorgan Chase & Co. dropped their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th.

Automatic Data Processing Stock Up 1.0%

Shares of Automatic Data Processing stock opened at $212.11 on Tuesday. Automatic Data Processing has a 1-year low of $208.62 and a 1-year high of $329.93. The company has a market capitalization of $85.40 billion, a PE ratio of 20.40 and a beta of 0.85. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The business has a 50-day moving average of $251.62 and a 200-day moving average of $271.46.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the business posted $2.35 earnings per share. Automatic Data Processing’s revenue for the quarter was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities analysts forecast that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has approved a stock repurchase program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Insider Transactions at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP David Foskett sold 266 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. The trade was a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 3,515 shares of company stock valued at $887,074 over the last 90 days. Insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently bought and sold shares of ADP. Brighton Jones LLC lifted its holdings in shares of Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock worth $2,935,000 after purchasing an additional 4,808 shares during the last quarter. Bison Wealth LLC increased its position in Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock worth $1,073,000 after buying an additional 681 shares during the period. Forvis Mazars Wealth Advisors LLC increased its position in Automatic Data Processing by 1.1% in the second quarter. Forvis Mazars Wealth Advisors LLC now owns 3,709 shares of the business services provider’s stock worth $1,144,000 after buying an additional 40 shares during the period. Stephens Inc. AR lifted its stake in Automatic Data Processing by 2.7% in the second quarter. Stephens Inc. AR now owns 28,013 shares of the business services provider’s stock valued at $8,700,000 after buying an additional 724 shares during the last quarter. Finally, Accretive Wealth Partners LLC boosted its holdings in shares of Automatic Data Processing by 0.6% during the second quarter. Accretive Wealth Partners LLC now owns 8,509 shares of the business services provider’s stock valued at $2,624,000 after acquiring an additional 47 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.