Automatic Data Processing (NASDAQ:ADP) Sets New 12-Month Low – Time to Sell?

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price reached a new 52-week low during trading on Tuesday . The stock traded as low as $249.27 and last traded at $250.4730, with a volume of 130570 shares changing hands. The stock had previously closed at $250.90.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. Stifel Nicolaus increased their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a “hold” rating in a research note on Thursday, July 31st. Citigroup started coverage on Automatic Data Processing in a report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 target price for the company. Dbs Bank upgraded Automatic Data Processing to a “hold” rating in a report on Thursday, August 21st. JPMorgan Chase & Co. dropped their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Finally, Morgan Stanley boosted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an “equal weight” rating in a report on Thursday, July 31st. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and a consensus target price of $312.67.

Automatic Data Processing Stock Down 0.4%

The company’s 50-day moving average is $279.38 and its 200 day moving average is $298.30. The stock has a market capitalization of $101.08 billion, a PE ratio of 24.70, a price-to-earnings-growth ratio of 2.39 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.44 by $0.05. The company had revenue of $5.18 billion for the quarter, compared to the consensus estimate of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. Automatic Data Processing’s revenue was up 7.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 1st. Shareholders of record on Friday, December 12th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, December 12th. This represents a $6.80 dividend on an annualized basis and a yield of 2.7%. This is an increase from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s payout ratio is presently 67.13%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Foskett sold 1,373 shares of the firm’s stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $407,190.61. Following the completion of the transaction, the vice president directly owned 11,781 shares of the company’s stock, valued at approximately $3,493,891.17. This trade represents a 10.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Joseph Desilva sold 4,614 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the sale, the vice president owned 17,536 shares of the company’s stock, valued at approximately $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 52,516 shares of company stock valued at $15,632,410. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in Automatic Data Processing by 0.9% during the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after purchasing an additional 389,451 shares during the period. State Street Corp boosted its stake in shares of 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 buying an additional 187,415 shares during the last quarter. Geode Capital Management LLC grew its holdings in 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 acquiring an additional 345,798 shares during the period. Capital Research Global Investors raised its position in 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 valued at $2,354,220,000 after acquiring an additional 116,074 shares in the last quarter. Finally, Wellington Management Group LLP lifted its holdings in Automatic Data Processing by 47.8% in 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 acquiring an additional 2,208,927 shares during the period. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.