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

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have earned a consensus rating of “Hold” from the fourteen ratings firms that are currently covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, nine have given a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $306.3846.

ADP has been the topic of a number of research reports. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Citigroup initiated coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target on the stock. Wells Fargo & Company dropped their price objective on 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. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a report on Tuesday. They issued an “overweight” rating and a $306.00 price target on the stock. Finally, JPMorgan Chase & Co. decreased their target price on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $254.51 on Friday. Automatic Data Processing has a 12 month low of $247.18 and a 12 month high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a market capitalization of $102.94 billion, a P/E ratio of 25.12 and a beta of 0.86. The company’s fifty day moving average price is $258.54 and its 200 day moving average price is $278.75.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.44 by $0.05. The firm had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business’s revenue was up 7.1% on a year-over-year basis. During the same period in the prior year, the firm earned $2.33 EPS. As a group, sell-side analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 2.7%. Automatic Data Processing’s dividend payout ratio is presently 67.13%.

Automatic Data Processing announced that its board has initiated a share repurchase plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares in the company, valued at $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP David Kwon sold 900 shares of the firm’s stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the sale, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 2,249 shares of company stock valued at $589,852. 0.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ADP. Jacobsen Capital Management increased its holdings in shares of Automatic Data Processing by 3.8% in the 2nd quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock valued at $280,000 after acquiring an additional 33 shares during the last quarter. Signature Wealth Management Group raised its stake in shares of Automatic Data Processing by 2.3% during the second quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock valued at $447,000 after purchasing an additional 33 shares in the last quarter. Ameritas Advisory Services LLC raised its position in shares of Automatic Data Processing by 2.1% during the 2nd quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider’s stock worth $502,000 after buying an additional 34 shares in the last quarter. PGIM Custom Harvest LLC raised its holdings in Automatic Data Processing by 4.9% during the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock worth $223,000 after purchasing an additional 34 shares in the last quarter. Finally, Accurate Wealth Management LLC raised its stake in shares of Automatic Data Processing by 3.0% in the 2nd quarter. Accurate Wealth Management LLC now owns 1,185 shares of the business services provider’s stock worth $362,000 after buying an additional 35 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Company Profile

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.