Automatic Data Processing (NASDAQ:ADP) Sets New 52-Week Low – Here’s What Happened

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $199.78 and last traded at $200.7150, with a volume of 725969 shares trading hands. The stock had previously closed at $204.89.

Analyst Ratings Changes

ADP has been the topic of several analyst reports. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target on the stock. Guggenheim initiated coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 price objective for the company. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Finally, Citigroup decreased their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $288.46.

Automatic Data Processing Trading Up 1.2%

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 business has a 50-day simple moving average of $224.94 and a 200-day simple moving average of $254.36. The company has a market cap of $82.34 billion, a PE ratio of 19.66 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping the consensus estimate 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 business had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same period last year, the business posted $2.35 earnings per share. The company’s quarterly revenue 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. On average, analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Automatic Data Processing declared that its board has authorized a stock repurchase plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP David Foskett sold 266 shares of the stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 4,058 shares of company stock valued at $1,000,263 over the last three months. 0.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Automatic Data Processing

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

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.