Zacks Investment Research reissued their hold rating on shares of Automatic Data Processing (NASDAQ:ADP) in a research note published on Monday.

According to Zacks, “ADP continues to enjoy a dominant position in the payroll processing and HCM market, primarily due to its robust product portfolio. Acquisitions have also been a key growth catalyst for the company. Further, the company’s strong balance sheet enables it to continue with its shareholder friendly activities alongside strategic buyouts and investments on product development. Shares of ADP outperformed its industry in the past year. Despite such positives, ADP faces significant competition in each of its product lines. Failure to meet varying client demands with updated technologies might reduce the demand for its solutions and services, thus hampering its position in the market. Further, the company’s dependence on its payroll, financial, accounting, and other data processing systems remains a concern. “

Several other equities research analysts have also recently issued reports on ADP. BMO Capital Markets lowered their price objective on shares of Automatic Data Processing from $155.00 to $150.00 and set a market perform rating for the company in a research report on Thursday, November 1st. BidaskClub raised shares of Automatic Data Processing from a buy rating to a strong-buy rating in a research report on Wednesday, August 15th. Citigroup boosted their price objective on shares of Automatic Data Processing from $137.00 to $147.00 and gave the company a neutral rating in a research report on Thursday, November 1st. Jefferies Financial Group boosted their price objective on shares of Automatic Data Processing to $167.00 and gave the company a hold rating in a research report on Thursday, November 1st. Finally, Guggenheim assumed coverage on shares of Automatic Data Processing in a research report on Monday, August 20th. They issued a buy rating and a $175.00 price objective for the company. Eight analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of Buy and a consensus target price of $148.69.

Automatic Data Processing stock opened at $142.31 on Monday. The stock has a market capitalization of $63.11 billion, a price-to-earnings ratio of 32.71, a P/E/G ratio of 2.19 and a beta of 0.91. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing has a 1 year low of $107.61 and a 1 year high of $153.51.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, October 31st. The business services provider reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.09. The company had revenue of $3.32 billion during the quarter, compared to analysts’ expectations of $3.28 billion. Automatic Data Processing had a net margin of 12.71% and a return on equity of 50.96%. The firm’s quarterly revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.94 EPS. As a group, research analysts expect that Automatic Data Processing will post 5.26 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 1st. Stockholders of record on Friday, December 14th will be issued a $0.79 dividend. The ex-dividend date of this dividend is Thursday, December 13th. This represents a $3.16 annualized dividend and a dividend yield of 2.22%. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.69. Automatic Data Processing’s payout ratio is currently 63.45%.

In related news, VP Michael C. Eberhard sold 9,100 shares of the business’s stock in a transaction that occurred on Friday, September 21st. The shares were sold at an average price of $150.00, for a total transaction of $1,365,000.00. Following the completion of the transaction, the vice president now owns 48,468 shares in the company, valued at approximately $7,270,200. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Brock Albinson sold 3,345 shares of the business’s stock in a transaction that occurred on Tuesday, September 4th. The stock was sold at an average price of $144.35, for a total transaction of $482,850.75. Following the transaction, the vice president now owns 6,081 shares of the company’s stock, valued at approximately $877,792.35. The disclosure for this sale can be found here. In the last 90 days, insiders sold 117,539 shares of company stock valued at $17,336,818. Company insiders own 0.33% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of ADP. Oak Ridge Investments LLC increased its stake in Automatic Data Processing by 6.6% during the 3rd quarter. Oak Ridge Investments LLC now owns 5,591 shares of the business services provider’s stock valued at $842,000 after purchasing an additional 348 shares in the last quarter. Atria Investments LLC increased its stake in Automatic Data Processing by 1.3% during the 3rd quarter. Atria Investments LLC now owns 27,201 shares of the business services provider’s stock valued at $4,098,000 after purchasing an additional 350 shares in the last quarter. Spearhead Capital Advisors LLC increased its stake in Automatic Data Processing by 0.8% during the 3rd quarter. Spearhead Capital Advisors LLC now owns 47,246 shares of the business services provider’s stock valued at $7,054,000 after purchasing an additional 373 shares in the last quarter. First Midwest Bank Trust Division increased its stake in Automatic Data Processing by 5.1% during the 2nd quarter. First Midwest Bank Trust Division now owns 7,859 shares of the business services provider’s stock valued at $1,054,000 after purchasing an additional 380 shares in the last quarter. Finally, Arizona State Retirement System increased its stake in Automatic Data Processing by 0.4% during the 3rd quarter. Arizona State Retirement System now owns 108,581 shares of the business services provider’s stock valued at $16,359,000 after purchasing an additional 383 shares in the last quarter. Hedge funds and other institutional investors own 78.14% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

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