Analysts Set Automatic Data Processing, Inc. (NASDAQ:ADP) Price Target at $273.50

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have been assigned a consensus recommendation of “Hold” from the thirteen ratings firms that are covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, nine have issued a hold recommendation and three have given a buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $273.50.

Several equities analysts have recently weighed in on ADP shares. Citigroup boosted their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a “neutral” rating in a research report on Thursday, July 30th. Argus lowered their price target on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating for the company in a research report on Tuesday, May 5th. Stifel Nicolaus lifted their price objective on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a research note on Thursday, July 30th. TD Cowen boosted their price objective 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. Finally, Mizuho reduced their target price on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th.

Automatic Data Processing Trading Down 2.5%

Shares of NASDAQ ADP opened at $266.06 on Tuesday. The business’s 50 day moving average is $245.82 and its two-hundred day moving average is $225.35. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $310.08. The stock has a market capitalization of $105.69 billion, a P/E ratio of 24.32 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The business 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 quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, research analysts expect that Automatic Data Processing will post 12.26 EPS for the current year.

Automatic Data Processing Dividend Announcement

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

Insider Buying and Selling

In related news, VP David Kwon sold 2,414 shares of the stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the sale, the vice president directly owned 9,660 shares of the company’s stock, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing during the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $26,000. Bard Associates Inc. bought a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $28,000. Prosperity Bancshares Inc purchased a new position in Automatic Data Processing during the 4th quarter valued at $33,000. Finally, High Point Wealth Management LLC purchased a new position in Automatic Data Processing during the 4th quarter valued at $34,000. 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.