Automatic Data Processing, Inc. (NASDAQ:ADP) Given Average Recommendation of "Hold" by Analysts

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) have earned a consensus rating of "Hold" from the twelve analysts that are currently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and two have issued a buy rating on the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $289.91.

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Several equities research analysts have recently weighed in on ADP shares. Stifel Nicolaus raised their target price on Automatic Data Processing from $271.00 to $287.00 and gave the stock a "hold" rating in a research report on Thursday, August 1st. Bank of America boosted their price objective on shares of Automatic Data Processing from $250.00 to $267.00 and gave the stock a "neutral" rating in a research report on Thursday, August 1st. Citigroup increased their target price on shares of Automatic Data Processing from $260.00 to $295.00 and gave the company a "neutral" rating in a research report on Wednesday, September 25th. TD Cowen upped their price objective on shares of Automatic Data Processing from $276.00 to $285.00 and gave the company a "hold" rating in a research note on Friday, November 1st. Finally, Mizuho raised their price objective on Automatic Data Processing from $281.00 to $310.00 and gave the stock an "outperform" rating in a report on Monday, November 4th.

Check Out Our Latest Analysis on ADP

Automatic Data Processing Price Performance

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Shares of ADP opened at $305.15 on Friday. The company has a market cap of $124.34 billion, a P/E ratio of 32.57, a PEG ratio of 3.54 and a beta of 0.79. Automatic Data Processing has a fifty-two week low of $227.12 and a fifty-two week high of $309.37. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56. The firm's 50 day moving average price is $289.55 and its 200 day moving average price is $266.02.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, October 30th. The business services provider reported $2.33 earnings per share for the quarter, topping the consensus estimate of $2.21 by $0.12. The company had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.77 billion. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. Automatic Data Processing's revenue was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.08 EPS. On average, research analysts forecast that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Increases Dividend

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The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th will be issued a $1.54 dividend. The ex-dividend date of this dividend is Friday, December 13th. This is a boost from Automatic Data Processing's previous quarterly dividend of $1.40. This represents a $6.16 dividend on an annualized basis and a yield of 2.02%. Automatic Data Processing's dividend payout ratio (DPR) is 59.77%.

Insiders Place Their Bets

In other news, VP Sreenivasa Kutam sold 38,975 shares of the firm's stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total transaction of $11,692,500.00. Following the completion of the transaction, the vice president now directly owns 32,604 shares of the company's stock, valued at $9,781,200. This trade represents a 54.45 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Don Mcguire sold 3,179 shares of the stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total value of $872,254.02. Following the sale, the vice president now owns 41,696 shares in the company, valued at approximately $11,440,548.48. This trade represents a 7.08 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 96,946 shares of company stock worth $27,462,781. 0.21% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Tower Wealth Partners Inc. increased its position in shares of Automatic Data Processing by 3.4% during the 3rd quarter. Tower Wealth Partners Inc. now owns 1,054 shares of the business services provider's stock worth $292,000 after purchasing an additional 35 shares during the last quarter. Harbour Investments Inc. boosted its stake in shares of Automatic Data Processing by 2.1% during the 3rd quarter. Harbour Investments Inc. now owns 1,742 shares of the business services provider's stock worth $482,000 after acquiring an additional 36 shares during the period. Petredis Investment Advisors LLC lifted its stake in shares of Automatic Data Processing by 0.4% during the 3rd quarter. Petredis Investment Advisors LLC now owns 10,485 shares of the business services provider's stock worth $2,902,000 after buying an additional 37 shares during the last quarter. Moors & Cabot Inc. boosted its holdings in shares of Automatic Data Processing by 0.7% during the 2nd quarter. Moors & Cabot Inc. now owns 5,698 shares of the business services provider's stock worth $1,360,000 after buying an additional 39 shares during the period. Finally, Austin Private Wealth LLC grew its stake in Automatic Data Processing by 4.4% in the 3rd quarter. Austin Private Wealth LLC now owns 923 shares of the business services provider's stock valued at $255,000 after buying an additional 39 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 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.

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