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

by · The Cerbat Gem

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP – Get Free Report) have been assigned a consensus recommendation of “Hold” from the twelve ratings firms that are covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have assigned a buy rating to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $273.50.

ADP has been the subject of several analyst reports. TD Cowen raised their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a research report on Monday, July 6th. Stifel Nicolaus upped their price target on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a report on Thursday, July 30th. UBS Group boosted their target price on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Wells Fargo & Company boosted their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Finally, Guggenheim increased their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, July 30th.

Get Our Latest Stock Report on Automatic Data Processing

Insider Buying and Selling at Automatic Data Processing

In other news, CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the transaction, the chief executive officer directly owned 80,624 shares of the company’s stock, valued at $22,648,087.84. The trade was a 26.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the transaction, the vice president owned 18,824 shares of the company’s stock, valued at approximately $5,324,744.88. This trade represents a 3.24% 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 have sold 33,773 shares of company stock worth $9,450,629 over the last quarter. Company insiders own 0.15% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several large investors have recently added to or reduced their stakes in ADP. Polaris Financial Partners bought a new position in shares of Automatic Data Processing in the third quarter worth approximately $25,000. Versant Capital Management Inc raised its holdings in Automatic Data Processing by 3.8% during the third quarter. Versant Capital Management Inc now owns 2,447 shares of the business services provider’s stock valued at $631,000 after acquiring an additional 90 shares during the period. Burkett Financial Services LLC raised its holdings in Automatic Data Processing by 1,000.0% during the third quarter. Burkett Financial Services LLC now owns 297 shares of the business services provider’s stock valued at $77,000 after acquiring an additional 270 shares during the period. Greenwich Wealth Management LLC lifted its position in shares of Automatic Data Processing by 20.3% in the second quarter. Greenwich Wealth Management LLC now owns 2,163 shares of the business services provider’s stock valued at $484,000 after acquiring an additional 365 shares in the last quarter. Finally, Atomic Invest LLC lifted its position in shares of Automatic Data Processing by 72.7% in the second quarter. Atomic Invest LLC now owns 171 shares of the business services provider’s stock valued at $38,000 after acquiring an additional 72 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

ADP stock opened at $257.68 on Wednesday. Automatic Data Processing has a twelve month low of $188.16 and a twelve month high of $293.51. 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 business has a 50 day moving average of $271.90 and a 200 day moving average of $237.76. The firm has a market cap of $102.11 billion, a PE ratio of 23.55, a price-to-earnings-growth ratio of 2.33 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP – Get Free Report) last announced 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. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion for the quarter, compared to analysts’ expectations of $5.44 billion. During the same quarter in the previous year, the business posted $2.26 EPS. Automatic Data Processing’s revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, research analysts forecast that Automatic Data Processing will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

About Automatic Data Processing

(Get Free Report)

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.

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