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

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) have been given an average rating of "Hold" by the twelve ratings firms that are currently covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the company. The average 1-year price target among brokers that have covered the stock in the last year is $289.91.

ADP has been the topic of several research analyst reports. Mizuho raised their price objective on shares of Automatic Data Processing from $281.00 to $310.00 and gave the stock an "outperform" rating in a research note on Monday, November 4th. Jefferies Financial Group boosted their price objective on Automatic Data Processing from $260.00 to $290.00 and gave the company a "hold" rating in a research report on Tuesday, October 22nd. Barclays boosted their price target on shares of Automatic Data Processing from $310.00 to $325.00 and gave the company an "overweight" rating in a report on Monday, November 4th. StockNews.com downgraded shares of Automatic Data Processing from a "buy" rating to a "hold" rating in a report on Thursday, September 19th. Finally, TD Cowen upped their target price on shares of Automatic Data Processing from $276.00 to $285.00 and gave the company a "hold" rating in a research note on Friday, November 1st.

Insiders Place Their Bets

In other news, VP Sreenivasa Kutam sold 38,975 shares of the stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $300.00, for a total transaction of $11,692,500.00. Following the transaction, the vice president now directly owns 32,604 shares of the company's stock, valued at $9,781,200. This represents a 54.45 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.21% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Automatic Data Processing

A number of institutional investors have recently added to or reduced their stakes in the stock. Plato Investment Management Ltd lifted its position in shares of Automatic Data Processing by 23.8% during the second quarter. Plato Investment Management Ltd now owns 26,610 shares of the business services provider's stock valued at $6,352,000 after buying an additional 5,114 shares during the last quarter. Moloney Securities Asset Management LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at approximately $209,000. Nomura Asset Management Co. Ltd. grew its holdings in shares of Automatic Data Processing by 5.8% in the third quarter. Nomura Asset Management Co. Ltd. now owns 280,961 shares of the business services provider's stock valued at $77,750,000 after purchasing an additional 15,340 shares during the period. RIA Advisory Group LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter valued at approximately $470,000. Finally, Dash Acquisitions Inc. boosted its stake in Automatic Data Processing by 5.6% during the third quarter. Dash Acquisitions Inc. now owns 52,329 shares of the business services provider's stock worth $15,069,000 after buying an additional 2,781 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Up 1.0 %

Shares of Automatic Data Processing stock traded up $2.83 during midday trading on Thursday, hitting $291.33. The company's stock had a trading volume of 1,787,126 shares, compared to its average volume of 1,656,456. The stock has a 50-day simple moving average of $297.62 and a 200-day simple moving average of $272.97. The firm has a market capitalization of $118.70 billion, a P/E ratio of 31.09, a PEG ratio of 3.50 and a beta of 0.79. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56. Automatic Data Processing has a 1-year low of $227.12 and a 1-year high of $309.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, October 30th. The business services provider reported $2.33 EPS for the quarter, beating the consensus estimate of $2.21 by $0.12. The business had revenue of $4.83 billion during the quarter, compared to analysts' expectations of $4.77 billion. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. The firm's quarterly revenue was up 7.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.08 EPS. As a group, sell-side analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 1st. Stockholders of record on Friday, December 13th will be issued a $1.54 dividend. The ex-dividend date is Friday, December 13th. This represents a $6.16 annualized dividend and a dividend yield of 2.11%. This is a boost from Automatic Data Processing's previous quarterly dividend of $1.40. Automatic Data Processing's dividend payout ratio is presently 65.74%.

About Automatic Data Processing

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.