Automatic Data Processing, Inc. (ADP) To Go Ex-Dividend on September 11th

Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend on Wednesday, August 5th. Stockholders of record on Friday, September 11th will be given a dividend of 1.70 per share by the business services provider on Thursday, October 1st. This represents a c) annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Friday, September 11th.

Automatic Data Processing has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 49 consecutive years. Automatic Data Processing has a dividend payout ratio of 62.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Automatic Data Processing to earn $13.40 per share next year, which means the company should continue to be able to cover its $6.80 annual dividend with an expected future payout ratio of 50.7%.

Automatic Data Processing Stock Down 3.5%

Shares of Automatic Data Processing stock opened at $267.96 on Wednesday. The firm has a market cap of $106.45 billion, a PE ratio of 24.49, a P/E/G ratio of 2.52 and a beta of 0.82. The business’s 50 day simple moving average is $264.30 and its 200 day simple moving average is $231.15. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing has a 52-week low of $188.16 and a 52-week high of $299.22.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business’s quarterly revenue was up 6.8% on a year-over-year basis. During the same period last year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, analysts predict that Automatic Data Processing will post 12.26 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several brokerages have commented on ADP. Guggenheim boosted their price target on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. UBS Group raised their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Morgan Stanley lifted their target price on Automatic Data Processing from $240.00 to $286.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Stifel Nicolaus raised their price target on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a research note on Thursday, July 30th. Finally, BMO Capital Markets boosted their price target on Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $273.50.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (NASDAQ: ADP) is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services.