Automatic Data Processing (NASDAQ:ADP) Shares Gap Up – What’s Next?

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $214.60, but opened at $220.79. Automatic Data Processing shares last traded at $219.5110, with a volume of 152,511 shares traded.

Analyst Ratings Changes

ADP has been the topic of several research reports. Morgan Stanley dropped their price target on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Tuesday, April 28th. Cantor Fitzgerald decreased their price objective on Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating for the company in a report on Wednesday, April 29th. UBS Group raised their price objective on Automatic Data Processing from $210.00 to $218.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Stifel Nicolaus dropped their target price on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Finally, Robert W. Baird dropped their target price on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $244.29.

Automatic Data Processing Stock Down 0.2%

The company’s fifty day moving average price is $215.76 and its 200-day moving average price is $227.12. The stock has a market capitalization of $87.98 billion, a PE ratio of 20.53 and a beta of 0.84. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter in the prior year, the business posted $3.06 EPS. The firm’s quarterly revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Analysts forecast that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing’s payout ratio is 63.43%.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. grew its position in Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after purchasing an additional 3,415,576 shares during the last quarter. Cardano Risk Management B.V. raised its holdings in Automatic Data Processing by 950.1% in the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock worth $916,557,000 after buying an additional 3,223,855 shares during the last quarter. Norges Bank bought a new position in shares of Automatic Data Processing in the fourth quarter worth approximately $721,738,000. Wellington Management Group LLP lifted its stake in shares of Automatic Data Processing by 47.8% in the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after buying an additional 2,208,927 shares in the last quarter. Finally, Clearbridge Investments LLC grew its holdings in shares of Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock valued at $434,151,000 after buying an additional 964,405 shares during the last quarter. 80.03% of the stock is currently 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.