Automatic Data Processing, Inc. (NASDAQ:ADP) Receives Average Recommendation of "Hold" from Analysts

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) has received a consensus recommendation of "Hold" from the eleven research firms that are presently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, seven 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 issued a report on the stock in the last year is $289.91.

Several brokerages have recently commented on ADP. Barclays increased their price objective on Automatic Data Processing from $310.00 to $325.00 and gave the stock an "overweight" rating in a research note on Monday, November 4th. Mizuho increased their price target on Automatic Data Processing from $281.00 to $310.00 and gave the company an "outperform" rating in a research report on Monday, November 4th. Jefferies Financial Group lifted their price objective on shares of Automatic Data Processing from $260.00 to $290.00 and gave the stock a "hold" rating in a report on Tuesday, October 22nd. UBS Group raised their price target on shares of Automatic Data Processing from $270.00 to $295.00 and gave the company a "neutral" rating in a research report on Tuesday, October 22nd. Finally, TD Cowen boosted their price target on shares of Automatic Data Processing from $276.00 to $285.00 and gave the stock a "hold" rating in a report on Friday, November 1st.

Automatic Data Processing Price Performance

Shares of ADP opened at $286.85 on Monday. The business's fifty day moving average is $298.46 and its 200 day moving average is $278.61. Automatic Data Processing has a 12-month low of $231.27 and a 12-month high of $309.63. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56. The stock has a market cap of $116.88 billion, a P/E ratio of 30.61, a P/E/G ratio of 3.50 and a beta of 0.79.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, October 30th. The business services provider reported $2.33 earnings per share for the quarter, beating analysts' consensus estimates of $2.21 by $0.12. The firm had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.77 billion. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. The business's quarterly revenue was up 7.1% compared to the same quarter last year. During the same period last year, the firm earned $2.08 earnings per share. Sell-side analysts anticipate 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 disclosed a quarterly dividend, which was paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th were issued a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a yield of 2.15%. This is a positive change from Automatic Data Processing's previous quarterly dividend of $1.40. The ex-dividend date was Friday, December 13th. Automatic Data Processing's dividend payout ratio is 65.74%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Sreenivasa Kutam sold 38,975 shares of the business's stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total value of $11,692,500.00. Following the sale, the vice president now owns 32,604 shares of the company's stock, valued at $9,781,200. The trade was a 54.45 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Brian L. Michaud sold 362 shares of the firm's stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $293.83, for a total transaction of $106,366.46. Following the completion of the transaction, the vice president now directly owns 13,706 shares of the company's stock, valued at approximately $4,027,233.98. This trade represents a 2.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 41,062 shares of company stock worth $12,299,550 over the last ninety days. 0.21% of the stock is currently owned by company insiders.

Institutional Trading of Automatic Data Processing

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Itau Unibanco Holding S.A. bought a new stake in shares of Automatic Data Processing during the third quarter valued at about $26,000. Kiely Wealth Advisory Group Inc. purchased a new stake in Automatic Data Processing in the 2nd quarter worth approximately $27,000. Dunhill Financial LLC lifted its stake in Automatic Data Processing by 346.5% in the 3rd quarter. Dunhill Financial LLC now owns 106 shares of the business services provider's stock worth $29,000 after purchasing an additional 149 shares in the last quarter. Hexagon Capital Partners LLC boosted its holdings in Automatic Data Processing by 78.5% in the 3rd quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider's stock valued at $32,000 after purchasing an additional 51 shares during the period. Finally, Capital Performance Advisors LLP purchased a new position in shares of Automatic Data Processing during the 3rd quarter valued at $35,000. 80.03% of the stock is currently owned by institutional investors.

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.