Automatic Data Processing (ADP) Stock Price, News & Analysis

Company Overview

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. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.

Key Stats

• Today's Range: $289.95 to $295.15
• 50-Day Range: $286.44 to $307.97
• 52-Week Range: $227.12 to $309.63
• Volume: 4.17 million shs
• Average Volume: 1.67 million shs
• Market Capitalization: $119.80 billion
• P/E Ratio: 31.38
• Dividend Yield: 2.10%
• Price Target: $289.91
• Consensus Rating: Hold

Automatic Data Processing Stock Analysis - MarketRank™

Automatic Data Processing scored higher than 93% of companies evaluated by MarketBeat, and ranked 27th out of 330 stocks in the business services sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.0 / 5
• Analyst Rating: Hold

Consensus Rating

Automatic Data Processing has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on 2 buy ratings, 8 hold ratings, and 2 sell ratings.

Amount of Analyst Coverage

Automatic Data Processing has been the subject of 7 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 8.66%

Earnings Growth

Earnings for Automatic Data Processing are expected to grow by 8.66% in the coming year, from $9.93 to $10.79 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Automatic Data Processing is 31.38, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 112.73.

Price to Earnings Ratio vs. Sector

The P/E ratio of Automatic Data Processing is 31.38, which means that it is trading at a more expensive P/E ratio than the Business Services sector average P/E ratio of about 28.48.

Price to Earnings Growth Ratio

Automatic Data Processing has a PEG Ratio of 3.50. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Automatic Data Processing has a P/B Ratio of 26.46. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.35% of the float of Automatic Data Processing has been sold short.

Short Interest Ratio / Days to Cover

Automatic Data Processing has a short interest ratio ("days to cover") of 3.4, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Automatic Data Processing has recently increased by 5.37%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Yield

Automatic Data Processing pays a meaningful dividend of 2.14%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Automatic Data Processing has been increasing its dividend for 49 years.

Dividend Coverage

The dividend payout ratio of Automatic Data Processing is 65.74%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Automatic Data Processing will have a dividend payout ratio of 57.09% next year. This indicates that Automatic Data Processing will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 4.4 / 5
• Environmental Score: -0.22

Percentage of Shares Shorted

1.35% of the float of Automatic Data Processing has been sold short.

Short Interest Ratio / Days to Cover

Automatic Data Processing has a short interest ratio ("days to cover") of 3.4, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Automatic Data Processing has recently increased by 5.37%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.9 / 5
• News Sentiment: 1.31

News Sentiment

Automatic Data Processing has a news sentiment score of 1.31. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.57 average news sentiment score of Business Services companies.

News Coverage This Week

MarketBeat has tracked 8 news articles for Automatic Data Processing this week, compared to 14 articles on an average week.

Search Interest

28 people have searched for ADP on MarketBeat in the last 30 days. This is an increase of 47% compared to the previous 30 days.

MarketBeat Follows

Only 2 people have added Automatic Data Processing to their MarketBeat watchlist in the last 30 days. This is a decrease of -96% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Automatic Data Processing insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $11,692,500.00 in company stock.

Percentage Held by Insiders

Only 0.21% of the stock of Automatic Data Processing is held by insiders.

Percentage Held by Institutions

80.03% of the stock of Automatic Data Processing is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

ADP Stock Analysis - Frequently Asked Questions

How have ADP shares performed this year?

Automatic Data Processing's stock was trading at $232.97 at the beginning of 2024. Since then, ADP shares have increased by 26.2% and is now trading at $294.02.
View the best growth stocks for 2024 here.

How were Automatic Data Processing's earnings last quarter?

Automatic Data Processing, Inc. (NASDAQ:ADP) posted its earnings results on Wednesday, October, 30th. The business services provider reported $2.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.12. The firm's revenue was up 7.1% on a year-over-year basis.
Read the conference call transcript.

Does Automatic Data Processing have any subsidiaries?

The following companies are subsidiaries of Automatic Data Processing: Celergo, Work Market, Global Cash Card, The Marcus Buckingham Company, Payroll S.A., SHPS Inc., PhyLogic Healthcare, and more.

Who are Automatic Data Processing's major shareholders?

Automatic Data Processing's top institutional shareholders include State Street Corp (4.50%), Geode Capital Management LLC (2.58%), Wellington Management Group LLP (1.48%) and UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC (0.79%). Insiders that own company stock include Maria Black, Michael A Bonarti, Don Mcguire, Carlos A Rodriguez, Donald Weinstein, Sreenivasa Kutam, Deborah L Dyson, John Ayala, Joseph Desilva, David Kwon, James T Sperduto, Laura G Brown, Augusto J Blanchard and Christopher D'ambrosio.
View institutional ownership trends.

How do I buy shares of Automatic Data Processing?

Shares of ADP stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Automatic Data Processing own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Automatic Data Processing investors own include NVIDIA (NVDA), Meta Platforms (META), JPMorgan Chase & Co. (JPM), Johnson & Johnson (JNJ), Chevron (CVX), Cisco Systems (CSCO) and Home Depot (HD).

Company Calendar

• Ex-Dividend for 10/1 Dividend: 9/13/2024
• Dividend Payable: 10/01/2024
• Last Earnings: 10/30/2024
• Ex-Dividend for 1/1 Dividend: 12/13/2024
• Today: 12/22/2024
• Dividend Payable: 1/01/2025
• Fiscal Year End: 6/30/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Business Services
• Industry: Data processing & preparation
• Sub-Industry: Data Processing & Outsourced Services
• Current Symbol: NASDAQ:ADP
• CUSIP: 05301510
• CIK: 8670
• Web: www.adp.com
• Phone: (973) 974-5000
• Fax: 973-974-5390
• Employees: 64,000
• Year Founded: 1949

Price Target and Rating

• Average Stock Price Target: $289.91
• High Stock Price Target: $325.00
• Low Stock Price Target: $235.00
• Potential Upside/Downside: -1.4%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 12 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $9.37
• Trailing P/E Ratio: 31.38
• Forward P/E Ratio: 29.61
• P/E Growth: 3.5
• Net Income: $3.75 billion
• Net Margins: 19.72%
• Pretax Margin: 25.69%
• Return on Equity: 82.36%
• Return on Assets: 6.89%

Debt

• Debt-to-Equity Ratio: 0.56
• Current Ratio: 1.01
• Quick Ratio: 1.01

Sales & Book Value

• Annual Sales: $18.45 billion
• Price / Sales: 6.49
• Cash Flow: $12.83 per share
• Price / Cash Flow: 22.92
• Book Value: $11.11 per share
• Price / Book: 26.46

Miscellaneous

• Outstanding Shares: 407,457,000
• Free Float: 406,601,000
• Market Cap: $119.80 billion
• Optionable: Optionable
• Beta: 0.79