Other research analysts also recently issued reports about the company. Wolfe Research downgraded Automatic Data Processing from an “outperform” rating to a “market perform” rating in a report on Thursday, October 31st. Credit Suisse Group reaffirmed a “buy” rating and issued a $185.00 price objective on shares of Automatic Data Processing in a research note on Monday, November 4th. Bank of America lowered Automatic Data Processing from a “buy” rating to a “neutral” rating in a research note on Wednesday, September 11th. Cowen started coverage on Automatic Data Processing in a report on Wednesday, September 11th. They issued an “outperform” rating and a $195.00 price target on the stock. Finally, Morgan Stanley boosted their target price on Automatic Data Processing from $150.00 to $174.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 15th. Ten equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Automatic Data Processing currently has an average rating of “Hold” and an average price target of $179.56.
Shares of ADP stock opened at $168.57 on Thursday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.01 and a current ratio of 1.01. Automatic Data Processing has a fifty-two week low of $121.40 and a fifty-two week high of $174.50. The company has a market capitalization of $72.94 billion, a P/E ratio of 30.93, a PEG ratio of 2.13 and a beta of 0.88. The stock has a 50 day moving average price of $165.86 and a two-hundred day moving average price of $164.80.
Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 30th. The business services provider reported $1.34 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.33 by $0.01. Automatic Data Processing had a return on equity of 46.94% and a net margin of 16.52%. The firm had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. During the same period in the previous year, the firm earned $1.20 earnings per share. The business’s revenue was up 5.6% compared to the same quarter last year. As a group, equities analysts predict that Automatic Data Processing will post 6.17 earnings per share for the current year.
Automatic Data Processing declared that its board has authorized a share repurchase program on Tuesday, November 12th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 6.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.
In other Automatic Data Processing news, CEO Carlos A. Rodriguez sold 49,392 shares of the business’s stock in a transaction that occurred on Wednesday, September 11th. The stock was sold at an average price of $161.70, for a total transaction of $7,986,686.40. Following the completion of the sale, the chief executive officer now directly owns 132,338 shares in the company, valued at approximately $21,399,054.60. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Carlos A. Rodriguez sold 48,571 shares of the business’s stock in a transaction that occurred on Wednesday, November 13th. The stock was sold at an average price of $168.51, for a total value of $8,184,699.21. Following the sale, the chief executive officer now owns 144,899 shares of the company’s stock, valued at $24,416,930.49. The disclosure for this sale can be found here. Corporate insiders own 0.31% of the company’s stock.
A number of large investors have recently bought and sold shares of the business. Krane Funds Advisors LLC purchased a new position in shares of Automatic Data Processing during the second quarter worth about $25,000. Horan Capital Advisors LLC. purchased a new position in shares of Automatic Data Processing during the third quarter worth about $31,000. Virtus ETF Advisers LLC purchased a new position in shares of Automatic Data Processing during the second quarter worth about $41,000. MRA Associates USA LLC purchased a new position in shares of Automatic Data Processing during the second quarter worth about $42,000. Finally, Gradient Investments LLC grew its holdings in shares of Automatic Data Processing by 126.2% during the third quarter. Gradient Investments LLC now owns 276 shares of the business services provider’s stock worth $45,000 after purchasing an additional 154 shares during the last quarter. Institutional investors own 80.19% of the company’s stock.
Automatic Data Processing Company Profile
Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.
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