Automatic Data Processing, Inc. (NASDAQ:ADP) Stock Has Consensus Price Target of $273.50 According to Analysts

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have earned an average rating of “Hold” from the twelve research firms that are covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $273.50.

A number of analysts have commented on the company. Stifel Nicolaus upped their price target on Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a research report on Thursday, July 30th. Citigroup increased their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a report on Thursday, July 30th. Cantor Fitzgerald raised their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. Morgan Stanley lifted their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Finally, Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, September 22nd.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $257.68 on Wednesday. The firm’s 50-day moving average price is $271.90 and its 200-day moving average price is $237.56. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The company has a market cap of $102.11 billion, a PE ratio of 23.55, a PEG ratio of 2.39 and a beta of 0.83. Automatic Data Processing has a 52-week low of $188.16 and a 52-week high of $293.51.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same period last year, the business posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, analysts anticipate that Automatic Data Processing will post 12.26 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were given a dividend of $1.70 per share. The ex-dividend date was Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 62.16%.

Insiders Place Their Bets

In related news, VP Brian Michaud sold 120 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the transaction, the vice president directly owned 18,442 shares of the company’s stock, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the transaction, the vice president owned 13,193 shares of the company’s stock, valued at $3,694,040. The trade was a 5.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,773 shares of company stock worth $9,450,629 over the last quarter. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently modified their holdings of ADP. Polaris Financial Partners purchased a new stake in shares of Automatic Data Processing during the third quarter worth $25,000. Versant Capital Management Inc raised its stake in shares of Automatic Data Processing by 3.8% during the 3rd quarter. Versant Capital Management Inc now owns 2,447 shares of the business services provider’s stock worth $631,000 after purchasing an additional 90 shares in the last quarter. Burkett Financial Services LLC lifted its holdings in shares of Automatic Data Processing by 1,000.0% during the 3rd quarter. Burkett Financial Services LLC now owns 297 shares of the business services provider’s stock valued at $77,000 after buying an additional 270 shares during the last quarter. Greenwich Wealth Management LLC grew its stake in shares of Automatic Data Processing by 20.3% in the 2nd quarter. Greenwich Wealth Management LLC now owns 2,163 shares of the business services provider’s stock valued at $484,000 after buying an additional 365 shares in the last quarter. Finally, Atomic Invest LLC grew its stake in shares of Automatic Data Processing by 72.7% in the 2nd quarter. Atomic Invest LLC now owns 171 shares of the business services provider’s stock valued at $38,000 after buying an additional 72 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.

About Automatic Data Processing

Automatic Data Processing, Inc (NASDAQ: ADP) is a provider of human capital management and business outsourcing solutions. The company helps organizations manage payroll, tax withholding and compliance, employee benefits, time and attendance, workforce management, talent acquisition, and human resources administration.

ADP offers cloud-based platforms and related services designed for businesses of different sizes, from small companies to large multinational employers. Its offerings include payroll and HR software, workforce analytics, talent management tools, retirement and insurance-related administration, and professional employer organization services through ADP TotalSource.