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

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have earned a consensus recommendation of “Hold” from the thirteen analysts that are presently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, nine have assigned a hold recommendation, two have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $244.2857.

A number of equities research analysts have commented on the stock. Mizuho dropped their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Stifel Nicolaus dropped their price objective on shares of Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. UBS Group increased their price objective on shares of Automatic Data Processing from $210.00 to $218.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Robert W. Baird dropped their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Finally, Citigroup dropped their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a research report on Thursday, April 30th.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP opened at $218.41 on Monday. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $315.98. The company’s 50 day moving average is $214.26 and its two-hundred day moving average is $227.98. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The company has a market cap of $87.31 billion, a PE ratio of 20.37 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, beating analysts’ consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the firm posted $3.06 EPS. The company’s quarterly revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Equities analysts predict that Automatic Data Processing will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.1%. Automatic Data Processing’s dividend payout ratio is currently 63.43%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ADP. Imprint Wealth LLC purchased a new position in shares of Automatic Data Processing in the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at $26,000. Bard Associates Inc. purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at $28,000. Whipplewood Advisors LLC grew its position in shares of Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock valued at $29,000 after buying an additional 137 shares during the last quarter. Finally, Board of the Pension Protection Fund purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at $31,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

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.