Automatic Data Processing, Inc. (NASDAQ:ADP) Given Average Recommendation of "Hold" by Brokerages

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) have earned an average recommendation of "Hold" from the twelve brokerages that are presently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $277.64.

ADP has been the subject of a number of recent analyst reports. Bank of America raised their price target on Automatic Data Processing from $250.00 to $267.00 and gave the company a "neutral" rating in a report on Thursday, August 1st. Barclays raised their price objective on shares of Automatic Data Processing from $282.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 5th. JPMorgan Chase & Co. increased their price target on shares of Automatic Data Processing from $250.00 to $285.00 and gave the company an "underweight" rating in a research note on Tuesday, August 20th. UBS Group boosted their price objective on shares of Automatic Data Processing from $270.00 to $295.00 and gave the stock a "neutral" rating in a research report on Tuesday, October 22nd. Finally, StockNews.com downgraded Automatic Data Processing from a "buy" rating to a "hold" rating in a report on Thursday, September 19th.

Automatic Data Processing Price Performance

Shares of ADP stock traded up $4.04 during mid-day trading on Wednesday, reaching $291.99. The company's stock had a trading volume of 742,853 shares, compared to its average volume of 1,626,678. The firm's 50-day moving average is $280.30 and its two-hundred day moving average is $259.15. The company has a market cap of $119.51 billion, a P/E ratio of 32.43, a PEG ratio of 3.13 and a beta of 0.79. Automatic Data Processing has a 1-year low of $205.53 and a 1-year high of $294.18. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.01 and a current ratio of 1.01.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, July 31st. The business services provider reported $2.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.06 by $0.03. The business had revenue of $4.80 billion during the quarter, compared to analysts' expectations of $4.74 billion. Automatic Data Processing had a return on equity of 89.20% and a net margin of 19.54%. Automatic Data Processing's quarterly revenue was up 7.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.89 EPS. On average, research analysts predict that Automatic Data Processing will post 10.04 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 1st. Shareholders of record on Friday, September 13th were paid a $1.40 dividend. This represents a $5.60 annualized dividend and a dividend yield of 1.92%. The ex-dividend date of this dividend was Friday, September 13th. Automatic Data Processing's dividend payout ratio is 62.50%.

Insider Transactions at Automatic Data Processing

In other news, VP Michael A. Bonarti sold 26,442 shares of the firm's stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $270.96, for a total transaction of $7,164,724.32. Following the completion of the transaction, the vice president now directly owns 88,426 shares of the company's stock, valued at $23,959,908.96. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, VP David Kwon sold 846 shares of the company's stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $270.60, for a total transaction of $228,927.60. Following the sale, the vice president now owns 10,410 shares in the company, valued at approximately $2,816,946. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Michael A. Bonarti sold 26,442 shares of the firm's stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $270.96, for a total value of $7,164,724.32. Following the completion of the transaction, the vice president now owns 88,426 shares of the company's stock, valued at approximately $23,959,908.96. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 58,817 shares of company stock valued at $15,999,208 over the last three months. Company insiders own 0.26% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Automatic Data Processing by 0.4% in the 1st quarter. Vanguard Group Inc. now owns 39,769,440 shares of the business services provider's stock valued at $9,932,020,000 after acquiring an additional 173,298 shares during the period. Ameriprise Financial Inc. raised its position in shares of Automatic Data Processing by 12.0% in the second quarter. Ameriprise Financial Inc. now owns 4,065,308 shares of the business services provider's stock valued at $964,989,000 after purchasing an additional 435,093 shares during the period. Capital Research Global Investors lifted its position in Automatic Data Processing by 2.3% during the first quarter. Capital Research Global Investors now owns 3,625,186 shares of the business services provider's stock worth $905,354,000 after acquiring an additional 81,869 shares during the last quarter. Legal & General Group Plc grew its position in shares of Automatic Data Processing by 4.1% in the second quarter. Legal & General Group Plc now owns 3,548,165 shares of the business services provider's stock valued at $846,912,000 after purchasing an additional 139,561 shares during the last quarter. Finally, Nordea Investment Management AB increased its stake in shares of Automatic Data Processing by 27.7% during the first quarter. Nordea Investment Management AB now owns 2,715,382 shares of the business services provider's stock worth $678,601,000 after purchasing an additional 589,831 shares during the period. 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.