Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Consensus Recommendation of “Hold” from Brokerages

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have received a consensus recommendation of “Hold” from the ten brokerages that are presently covering the firm, Marketbeat reports. Two analysts have rated the stock with a sell rating, six have issued a hold rating and two have issued a buy rating on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $254.58.

A number of research firms have commented on ADP. Mizuho lifted their target price on shares of Automatic Data Processing from $265.00 to $272.00 and gave the stock a “buy” rating in a report on Monday, March 11th. StockNews.com cut shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Tuesday, March 19th. Bank of America raised shares of Automatic Data Processing from an “underperform” rating to a “neutral” rating and lifted their price target for the stock from $217.00 to $243.00 in a research report on Wednesday, January 17th. Royal Bank of Canada reissued a “sector perform” rating and set a $267.00 price target on shares of Automatic Data Processing in a research report on Thursday, February 1st. Finally, Evercore ISI lifted their price target on shares of Automatic Data Processing from $227.00 to $235.00 and gave the stock an “underperform” rating in a research report on Tuesday, March 26th.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Don Mcguire sold 11,333 shares of the business’s stock in a transaction dated Thursday, February 1st. The shares were sold at an average price of $245.00, for a total transaction of $2,776,585.00. Following the sale, the vice president now directly owns 19,906 shares of the company’s stock, valued at approximately $4,876,970. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other Automatic Data Processing news, VP Sreenivasa Kutam sold 368 shares of the business’s stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $247.01, for a total transaction of $90,899.68. Following the sale, the vice president now directly owns 20,319 shares of the company’s stock, valued at approximately $5,018,996.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Don Mcguire sold 11,333 shares of the business’s stock in a transaction dated Thursday, February 1st. The stock was sold at an average price of $245.00, for a total transaction of $2,776,585.00. Following the transaction, the vice president now owns 19,906 shares in the company, valued at $4,876,970. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 15,162 shares of company stock valued at $3,741,859. 0.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Maryland State Retirement & Pension System increased its stake in shares of Automatic Data Processing by 0.9% during the 1st quarter. Maryland State Retirement & Pension System now owns 32,473 shares of the business services provider’s stock worth $7,874,000 after purchasing an additional 275 shares during the last quarter. Veracity Capital LLC acquired a new position in shares of Automatic Data Processing during the 1st quarter worth about $206,000. First Trust Direct Indexing L.P. increased its stake in shares of Automatic Data Processing by 22.8% during the 1st quarter. First Trust Direct Indexing L.P. now owns 18,430 shares of the business services provider’s stock worth $4,603,000 after purchasing an additional 3,423 shares during the last quarter. Norden Group LLC increased its stake in shares of Automatic Data Processing by 2,437.2% during the 1st quarter. Norden Group LLC now owns 93,114 shares of the business services provider’s stock worth $23,256,000 after purchasing an additional 89,444 shares during the last quarter. Finally, State of Alaska Department of Revenue grew its stake in Automatic Data Processing by 0.4% in the 1st quarter. State of Alaska Department of Revenue now owns 44,565 shares of the business services provider’s stock valued at $11,129,000 after buying an additional 165 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

ADP opened at $243.31 on Friday. The company has a fifty day moving average price of $247.22 and a two-hundred day moving average price of $239.23. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.01 and a current ratio of 1.01. Automatic Data Processing has a 52 week low of $201.46 and a 52 week high of $256.84. The firm has a market capitalization of $99.95 billion, a PE ratio of 28.32, a P/E/G ratio of 2.28 and a beta of 0.78.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 31st. The business services provider reported $2.13 EPS for the quarter, topping analysts’ consensus estimates of $2.10 by $0.03. Automatic Data Processing had a net margin of 19.14% and a return on equity of 95.22%. The firm had revenue of $4.67 billion during the quarter, compared to analyst estimates of $4.65 billion. During the same quarter in the previous year, the business earned $1.96 EPS. The business’s quarterly revenue was up 6.3% compared to the same quarter last year. As a group, analysts anticipate that Automatic Data Processing will post 9.14 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be given a $1.40 dividend. The ex-dividend date is Friday, June 14th. This represents a $5.60 annualized dividend and a yield of 2.30%. Automatic Data Processing’s dividend payout ratio is currently 65.19%.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.