Automatic Data Processing’s (ADP) “Underperform” Rating Reiterated at Jefferies Financial Group

Jefferies Financial Group reissued their underperform rating on shares of Automatic Data Processing (NASDAQ:ADP) in a report released on Tuesday, Marketbeat Ratings reports. Jefferies Financial Group currently has a $230.00 price target on the business services provider’s stock, down from their prior price target of $245.00.

Several other equities research analysts have also recently weighed in on ADP. JPMorgan Chase & Co. dropped their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Citigroup began coverage on shares of Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target for the company. Dbs Bank upgraded shares of Automatic Data Processing to a “hold” rating in a research report on Thursday, August 21st. Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 8th. Two equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $306.42.

Automatic Data Processing Stock Down 1.7%

Shares of ADP opened at $260.97 on Tuesday. Automatic Data Processing has a 1 year low of $247.18 and a 1 year high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a 50 day simple moving average of $263.81 and a two-hundred day simple moving average of $289.32. The firm has a market cap of $105.55 billion, a P/E ratio of 25.76 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.44 by $0.05. The company had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The firm’s revenue was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, analysts forecast that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 1st. Investors of record on Friday, December 12th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, December 12th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.54. This represents a $6.80 annualized dividend and a yield of 2.6%. Automatic Data Processing’s payout ratio is currently 67.13%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Activest Wealth Management boosted its position in shares of Automatic Data Processing by 2,600.0% in the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock worth $25,000 after purchasing an additional 78 shares in the last quarter. Imprint Wealth LLC purchased a new position in Automatic Data Processing during the third quarter valued at $25,000. Harbor Asset Planning Inc. bought a new stake in Automatic Data Processing in the second quarter worth $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing in the second quarter worth $26,000. Finally, Howard Hughes Medical Institute bought a new position in shares of Automatic Data Processing during the second quarter valued at $27,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Company Profile

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.