Automatic Data Processing (NASDAQ:ADP) Raised to “Strong-Buy” at Guggenheim

Automatic Data Processing (NASDAQ:ADP) was upgraded by stock analysts at Guggenheim to a “strong-buy” rating in a report released on Wednesday,Zacks.com reports.

Several other research firms also recently commented on ADP. Citigroup lowered their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Stifel Nicolaus dropped their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Wells Fargo & Company cut their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Finally, JPMorgan Chase & Co. reduced their price target 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. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $288.46.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $210.66 on Wednesday. Automatic Data Processing has a fifty-two week low of $203.26 and a fifty-two week high of $329.93. The company has a market cap of $84.82 billion, a PE ratio of 20.26 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The business has a 50-day simple moving average of $230.43 and a two-hundred day simple moving average of $257.62.

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

Automatic Data Processing announced that its board has initiated a stock repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, the vice president directly 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP David Kwon sold 900 shares of the company’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the transaction, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 4,058 shares of company stock worth $1,000,263 in the last 90 days. 0.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ADP. Stance Capital LLC grew its stake in Automatic Data Processing by 251.5% during the 4th quarter. Stance Capital LLC now owns 16,093 shares of the business services provider’s stock valued at $4,140,000 after acquiring an additional 11,515 shares in the last quarter. Cornerstone Planning LLC purchased a new position in Automatic Data Processing in the 4th quarter worth approximately $3,249,000. Osbon Capital Management LLC acquired a new position in shares of Automatic Data Processing during the 4th quarter worth approximately $52,000. World Investment Advisors boosted its holdings in shares of Automatic Data Processing by 164.0% during the 4th quarter. World Investment Advisors now owns 28,062 shares of the business services provider’s stock worth $7,219,000 after purchasing an additional 17,434 shares during the last quarter. Finally, Farmers National Bank grew its position in shares of Automatic Data Processing by 2.8% in the fourth quarter. Farmers National Bank now owns 2,425 shares of the business services provider’s stock valued at $624,000 after purchasing an additional 66 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.