Automatic Data Processing, Inc. (NASDAQ:ADP) Given Consensus Rating of “Hold” by Analysts

Automatic Data Processing, Inc. (NASDAQ:ADP) has been assigned an average rating of “Hold” from the thirteen ratings firms that are covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and two have given a buy rating to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $306.4167.

Several equities research analysts have weighed in on ADP shares. UBS Group reduced their price objective on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a research note on Wednesday, September 17th. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Wells Fargo & Company decreased their price target on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Finally, Citigroup began coverage on Automatic Data Processing in a research report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price target for the company.

Automatic Data Processing Trading Down 1.7%

Shares of ADP opened at $252.88 on Monday. The stock has a market capitalization of $102.28 billion, a PE ratio of 24.96 and a beta of 0.86. The company’s fifty day moving average is $258.23 and its 200 day moving average is $284.38. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing has a fifty-two week low of $247.18 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The business had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same period last year, the company posted $2.33 EPS. The business’s revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts expect 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 was paid on Thursday, January 1st. Investors of record on Friday, December 12th were paid a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, December 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s dividend payout ratio is presently 67.13%.

Institutional Trading of Automatic Data Processing

Several institutional investors have recently added to or reduced their stakes in ADP. Vanguard Group Inc. raised its holdings in shares of Automatic Data Processing by 0.9% in the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after buying an additional 389,451 shares during the period. State Street Corp increased its stake in Automatic Data Processing by 1.0% in the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock worth $5,820,445,000 after purchasing an additional 187,415 shares during the period. Geode Capital Management LLC lifted its position in shares of Automatic Data Processing by 3.1% during the second quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider’s stock worth $3,511,698,000 after purchasing an additional 345,798 shares during the last quarter. Capital Research Global Investors lifted its position in shares of Automatic Data Processing by 1.5% during the third quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after purchasing an additional 116,074 shares during the last quarter. Finally, Wellington Management Group LLP boosted its stake in shares of Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock valued at $2,004,691,000 after purchasing an additional 2,208,927 shares during the period. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.