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

Automatic Data Processing, Inc. (NASDAQ:ADP) has been assigned an average rating of “Hold” from the thirteen ratings firms that are currently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $244.2857.

A number of research analysts have commented on the company. Citigroup lowered their price target on Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating for the company in a research report on Thursday, April 30th. Robert W. Baird reduced their target price on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. TD Cowen upgraded Automatic Data Processing to a “hold” rating in a report on Monday, May 18th. Jefferies Financial Group cut their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Finally, Morgan Stanley reduced their price objective 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 Tuesday, April 28th.

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds have recently made changes to their positions in the company. Northcape Wealth Management LLC raised its holdings in Automatic Data Processing by 0.6% in the fourth quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider’s stock worth $1,692,000 after purchasing an additional 39 shares in the last quarter. Private Advisory Group LLC boosted its holdings in shares of Automatic Data Processing by 4.8% during the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider’s stock valued at $254,000 after buying an additional 40 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC grew its position in shares of Automatic Data Processing by 0.3% in the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider’s stock worth $4,455,000 after buying an additional 41 shares during the period. Rathbones Group PLC lifted its position in Automatic Data Processing by 1.1% during the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider’s stock valued at $1,036,000 after acquiring an additional 42 shares during the period. Finally, Zullo Investment Group Inc. lifted its position in Automatic Data Processing by 2.3% during the 4th quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider’s stock valued at $485,000 after acquiring an additional 42 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $223.55 on Monday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $315.98. The firm has a market cap of $89.36 billion, a PE ratio of 20.85 and a beta of 0.84. The business has a 50 day moving average price of $216.71 and a 200-day moving average price of $226.78.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, beating analysts’ consensus estimates of $3.30 by $0.07. The company had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm’s revenue was up 7.0% compared to the same quarter last year. During the same period in the prior year, the business posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Equities research analysts predict that Automatic Data Processing will post 11.08 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company 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 dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. Automatic Data Processing’s dividend payout ratio is 63.43%.

About Automatic Data Processing

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.