Automatic Data Processing’s (ADP) Underperform Rating Reaffirmed at Jefferies Financial Group

Automatic Data Processing (NASDAQ:ADP)‘s stock had its “underperform” rating reaffirmed by analysts at Jefferies Financial Group in a research report issued on Tuesday,Benzinga reports. They currently have a $230.00 price objective on the business services provider’s stock, down from their prior price objective of $245.00. Jefferies Financial Group’s price objective indicates a potential downside of 13.19% from the company’s previous close.

A number of other research firms have also issued reports on ADP. UBS Group lowered their target price on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, September 17th. Citigroup assumed coverage on shares of Automatic Data Processing in a research report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective for the company. JPMorgan Chase & Co. dropped their price objective on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. Wells Fargo & Company decreased their target price on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 8th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $306.42.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $264.95 on Tuesday. The firm has a fifty day moving average of $265.42 and a 200-day moving average of $290.13. Automatic Data Processing has a 52-week low of $247.18 and a 52-week high of $329.93. 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 firm has a market capitalization of $107.16 billion, a P/E ratio of 26.15 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 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 firm had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same period in the prior year, the company earned $2.33 EPS. The firm’s revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, analysts predict that Automatic Data Processing will post 9.93 EPS for the current year.

Institutional Investors Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Activest Wealth Management grew its stake in Automatic Data Processing by 2,600.0% in the first quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock worth $25,000 after purchasing an additional 78 shares in the last quarter. Imprint Wealth LLC acquired a new stake in Automatic Data Processing during the third quarter valued at approximately $25,000. Harbor Asset Planning Inc. bought a new position in Automatic Data Processing during the 2nd quarter worth approximately $26,000. Mid American Wealth Advisory Group Inc. acquired a new position in shares of Automatic Data Processing in the 2nd quarter worth approximately $26,000. Finally, Howard Hughes Medical Institute bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at approximately $27,000. Institutional investors own 80.03% of the company’s stock.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.