UBS Group Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $210.00

Automatic Data Processing (NASDAQ:ADP) had its price objective lowered by UBS Group from $220.00 to $210.00 in a research report released on Monday morning,Benzinga reports. UBS Group currently has a neutral rating on the business services provider’s stock.

ADP has been the topic of several other research reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target on the stock. Wells Fargo & Company reduced their price target on shares of Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a research report on Friday, March 27th. Guggenheim initiated coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They set a “buy” rating and a $270.00 price target on the stock. Finally, Citigroup reduced their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Automatic Data Processing presently has an average rating of “Hold” and an average price target of $278.62.

Automatic Data Processing Trading Up 0.9%

NASDAQ ADP opened at $196.92 on Monday. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $329.93. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The stock has a 50 day simple moving average of $210.46 and a two-hundred day simple moving average of $245.05. The stock has a market cap of $79.29 billion, a P/E ratio of 18.93 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter last year, the business posted $2.35 EPS. The business’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts forecast that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 3.5%. Automatic Data Processing’s payout ratio is currently 65.38%.

Automatic Data Processing declared that its Board of Directors has initiated a stock repurchase 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 typically a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president owned 8,912 shares in the company, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,809 shares of company stock worth $410,410. 0.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds and other institutional investors have recently bought and sold shares of the business. Imprint Wealth LLC purchased a new stake in Automatic Data Processing in the third quarter worth about $25,000. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing in the third quarter worth about $28,000. Cloud Capital Management LLC purchased a new stake in Automatic Data Processing in the third quarter worth about $29,000. Cornerstone Financial Management LLC purchased a new stake in Automatic Data Processing in the fourth quarter worth about $26,000. Finally, Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the third quarter worth about $32,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.