Automatic Data Processing (NASDAQ:ADP) Reaches New 1-Year Low - Time to Sell?

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $255.16 and last traded at $257.17, with a volume of 2365021 shares. The stock had previously closed at $260.30.

Analyst Upgrades and Downgrades

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ADP has been the topic of several analyst reports. Stifel Nicolaus lifted their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a report on Thursday, July 10th. Weiss Ratings restated a "buy (b)" rating on shares of Automatic Data Processing in a research note on Wednesday, October 8th. Finally, Wells Fargo & Company lowered their price target on Automatic Data Processing from $288.00 to $272.00 and set an "underweight" rating for the company in a research report on Thursday, October 30th. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and a consensus target price of $312.67.

Read Our Latest Analysis on Automatic Data Processing

Automatic Data Processing Trading Down 1.2%

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The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. The company has a 50 day simple moving average of $288.68 and a two-hundred day simple moving average of $301.07. The firm has a market cap of $104.18 billion, a PE ratio of 25.39, a P/E/G ratio of 2.39 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, beating the consensus estimate 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 company had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.14 billion. During the same period in the prior year, the company earned $2.33 earnings per share. 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. Analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

• 3 payroll companies get clocked, but 1 looks cheap

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th were issued a $1.54 dividend. This represents a $6.16 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Friday, September 12th. Automatic Data Processing's dividend payout ratio is presently 60.81%.

Insider Buying and Selling

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 597 shares of the company's stock in a transaction on Wednesday, September 10th. The shares were sold at an average price of $296.90, for a total value of $177,249.30. Following the sale, the vice president directly owned 10,541 shares of the company's stock, valued at approximately $3,129,622.90. This represents a 5.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the completion of the sale, the vice president directly owned 17,536 shares in the company, valued at approximately $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 52,516 shares of company stock valued at $15,632,410 in the last 90 days. 0.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Automatic Data Processing by 0.9% in the second quarter. Vanguard Group Inc. now owns 41,300,182 shares of the business services provider's stock worth $12,736,976,000 after acquiring an additional 350,298 shares during the period. State Street Corp raised its position in shares of Automatic Data Processing by 1.0% in the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider's stock worth $5,820,445,000 after acquiring an additional 187,415 shares during the period. Geode Capital Management LLC raised its position in shares of Automatic Data Processing by 3.1% in the second quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider's stock worth $3,511,698,000 after acquiring an additional 345,798 shares during the period. Laurel Wealth Advisors LLC raised its position in shares of Automatic Data Processing by 30,110.7% in the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider's stock worth $1,439,845,000 after acquiring an additional 4,653,304 shares during the period. Finally, Invesco Ltd. raised its position in shares of Automatic Data Processing by 13.5% in the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider's stock worth $1,411,449,000 after acquiring an additional 544,968 shares during the period. Institutional investors and hedge funds 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.

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