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

Automatic Data Processing, Inc. (NASDAQ:ADP) has been assigned an average rating of “Hold” from the fourteen research firms that are covering the firm, Marketbeat reports. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $284.7692.

A number of research firms have weighed in on ADP. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Stifel Nicolaus decreased their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research report on Monday, February 9th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Wells Fargo & Company reduced their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating for the company in a research report on Friday, March 27th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 806 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the sale, the vice president owned 11,187 shares of the company’s stock, valued at $2,962,317.60. This trade represents a 6.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the sale, the vice president directly owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 3,158 shares of company stock worth $766,263. Corporate insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several large investors have recently modified their holdings of ADP. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the 3rd quarter worth $25,000. Cornerstone Financial Management LLC bought a new position in shares of Automatic Data Processing in the 4th quarter worth $26,000. TruNorth Capital Management LLC bought a new position in shares of Automatic Data Processing in the 3rd quarter worth $28,000. Bard Associates Inc. bought a new position in shares of Automatic Data Processing in the 4th quarter worth $28,000. Finally, Cloud Capital Management LLC bought a new position in shares of Automatic Data Processing in the 3rd quarter worth $29,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $203.61 on Wednesday. The company has a market capitalization of $81.98 billion, a PE ratio of 19.58 and a beta of 0.85. The company has a 50 day simple moving average of $216.21 and a two-hundred day simple moving average of $248.76. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. Automatic Data Processing has a fifty-two week low of $197.08 and a fifty-two week high of $329.93.

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

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were given a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.3%. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

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

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.