Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Consensus Rating of “Hold” from Brokerages

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have earned a consensus rating of “Hold” from the thirteen brokerages that are presently covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and two have issued a buy recommendation on the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $290.00.

A number of equities research analysts have recently weighed in on the company. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target for the company. Wells Fargo & Company dropped their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Stifel Nicolaus decreased their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research report on Monday, February 9th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th.

Automatic Data Processing Stock Down 0.7%

ADP stock opened at $214.47 on Tuesday. The company has a 50 day moving average of $247.87 and a two-hundred day moving average of $269.28. The company has a market cap of $86.35 billion, a price-to-earnings ratio of 20.62 and a beta of 0.85. Automatic Data Processing has a 12-month low of $208.62 and a 12-month high of $329.93. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.Automatic Data Processing’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the company earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, equities analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

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

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Insider Buying and Selling

In related news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP David Kwon sold 806 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president directly owned 11,187 shares of the company’s stock, valued at $2,962,317.60. The trade was a 6.72% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 3,515 shares of company stock worth $887,074. Insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several large investors have recently modified their holdings of the company. Mid American Wealth Advisory Group Inc. acquired a new position in Automatic Data Processing during the 2nd quarter worth $26,000. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the third quarter worth about $25,000. Howard Hughes Medical Institute acquired a new position in shares of Automatic Data Processing during the 2nd quarter worth about $27,000. Solstein Capital LLC acquired a new position in shares of Automatic Data Processing during the 2nd quarter worth about $28,000. Finally, Westside Investment Management Inc. boosted its stake in Automatic Data Processing by 80.0% during the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 40 shares during the period. 80.03% of the stock is 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.