Guggenheim Initiates Coverage on Automatic Data Processing (NASDAQ:ADP)

Guggenheim initiated coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a research report issued on Thursday, Marketbeat Ratings reports. The firm set a “buy” rating and a $270.00 price target on the business services provider’s stock. Guggenheim’s price objective suggests a potential upside of 29.63% from the company’s current price.

Several other research firms have also recently commented on ADP. Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th. Stifel Nicolaus decreased their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. JPMorgan Chase & Co. cut their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Wells Fargo & Company dropped their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Finally, Citigroup reduced their price objective on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $288.46.

Automatic Data Processing Price Performance

Shares of ADP opened at $208.28 on Thursday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a market cap of $83.86 billion, a PE ratio of 20.03 and a beta of 0.86. Automatic Data Processing has a twelve month low of $203.26 and a twelve month high of $329.93. The firm’s 50 day moving average price is $231.53 and its 200 day moving average price is $257.95.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates 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 quarterly revenue was up 6.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, research analysts expect that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing announced that its board has initiated a share 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 reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

Insider Activity

In other news, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 4,058 shares of company stock valued at $1,000,263 in the last three months. Company insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Stance Capital LLC boosted its holdings in shares of Automatic Data Processing by 251.5% in the 4th quarter. Stance Capital LLC now owns 16,093 shares of the business services provider’s stock worth $4,140,000 after purchasing an additional 11,515 shares in the last quarter. Cornerstone Planning LLC purchased a new position in shares of Automatic Data Processing in the fourth quarter worth about $3,249,000. Osbon Capital Management LLC bought a new stake in shares of Automatic Data Processing in the 4th quarter valued at about $52,000. World Investment Advisors boosted its holdings in Automatic Data Processing by 164.0% during the 4th quarter. World Investment Advisors now owns 28,062 shares of the business services provider’s stock valued at $7,219,000 after acquiring an additional 17,434 shares during the period. Finally, Farmers National Bank grew its position in Automatic Data Processing by 2.8% during the 4th quarter. Farmers National Bank now owns 2,425 shares of the business services provider’s stock worth $624,000 after acquiring an additional 66 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.