Brokerages Set Automatic Data Processing, Inc. (NASDAQ:ADP) PT at $284.77

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have been assigned a consensus rating of “Hold” from the fourteen analysts that are covering the company, MarketBeat reports. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $278.6154.

A number of equities research analysts recently issued reports on ADP shares. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. JPMorgan Chase & Co. decreased their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. UBS Group lowered their price target on shares of Automatic Data Processing from $220.00 to $210.00 and set a “neutral” rating for the company in a report on Monday. Finally, Stifel Nicolaus dropped their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research report on Monday, February 9th.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP David Foskett sold 266 shares of the 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 sale, 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 position. The SEC filing for this sale provides additional information. Insiders sold 1,809 shares of company stock valued at $410,410 over the last three months. 0.20% of the stock is owned by company insiders.

Institutional Trading of Automatic Data Processing

Several institutional investors have recently added to or reduced their stakes in ADP. 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. TruNorth Capital Management LLC purchased a new position in Automatic Data Processing during the 3rd quarter valued at $28,000. Bard Associates Inc. bought a new position in Automatic Data Processing in the 4th quarter valued at $28,000. Finally, Cloud Capital Management LLC bought a new position in Automatic Data Processing in the 3rd quarter valued at $29,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $195.08 on Wednesday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing has a 1 year low of $188.16 and a 1 year high of $329.93. The stock’s 50 day simple moving average is $211.21 and its two-hundred day simple moving average is $245.39. The company has a market cap of $78.55 billion, a price-to-earnings ratio of 18.76 and a beta of 0.85.

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

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

Automatic Data Processing announced that its board has authorized a stock buyback plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

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.