Analysts Set Automatic Data Processing, Inc. (NASDAQ:ADP) Target Price at $290.00

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have received a consensus rating of “Hold” from the thirteen research firms that are currently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have given a buy rating to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $290.00.

Several research firms have recently weighed in on ADP. Stifel Nicolaus cut 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 report on Monday, February 9th. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Morgan Stanley dropped their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective for the company. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The shares were 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 3,515 shares of company stock worth $887,074. Company insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new position in Automatic Data Processing in the 4th quarter valued at about $26,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing in the 2nd quarter valued at about $27,000. TruNorth Capital Management LLC acquired a new stake in Automatic Data Processing in the 3rd quarter worth about $28,000. Finally, Bard Associates Inc. acquired a new stake in Automatic Data Processing in the 4th quarter worth about $28,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Up 0.3%

Automatic Data Processing stock opened at $209.11 on Friday. The business’s 50-day moving average price is $233.62 and its 200 day moving average price is $258.96. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a market cap of $84.20 billion, a price-to-earnings ratio of 20.11 and a beta of 0.86. Automatic Data Processing has a 52 week low of $203.26 and a 52 week high of $329.93.

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

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is currently 65.38%.

Automatic Data Processing declared that its board has authorized a share repurchase program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

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.