Automatic Data Processing (ADP) – Research Analysts’ Weekly Ratings Changes

A number of research firms have changed their ratings and price targets for Automatic Data Processing (NASDAQ: ADP):

• 8/21/2024 – Automatic Data Processing was upgraded by analysts at StockNews.com from a “hold” rating to a “buy” rating.
• 8/20/2024 – Automatic Data Processing had its price target raised by analysts at JPMorgan Chase & Co. from $250.00 to $285.00. They now have an “underweight” rating on the stock.
• 8/5/2024 – Automatic Data Processing had its price target raised by analysts at Barclays PLC from $282.00 to $310.00. They now have an “overweight” rating on the stock.
• 8/1/2024 – Automatic Data Processing had its “sector perform” rating reaffirmed by analysts at Royal Bank of Canada. They now have a $267.00 price target on the stock.
• 8/1/2024 – Automatic Data Processing had its price target raised by analysts at Bank of America Co. from $250.00 to $267.00. They now have a “neutral” rating on the stock.
• 8/1/2024 – Automatic Data Processing had its price target raised by analysts at Stifel Nicolaus from $271.00 to $287.00. They now have a “hold” rating on the stock.
• 8/1/2024 – Automatic Data Processing had its price target raised by analysts at Jefferies Financial Group Inc. from $250.00 to $260.00. They now have a “hold” rating on the stock.
• 7/2/2024 – Automatic Data Processing was downgraded by analysts at StockNews.com from a “buy” rating to a “hold” rating.

Automatic Data Processing Price Performance

ADP stock traded up $1.53 during trading on Thursday, reaching $269.38. 1,094,400 shares of the company were exchanged, compared to its average volume of 1,661,285. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.01 and a current ratio of 1.01. The stock’s 50 day moving average price is $249.44 and its 200 day moving average price is $247.88. Automatic Data Processing, Inc. has a 52-week low of $205.53 and a 52-week high of $269.58. The company has a market cap of $110.25 billion, a P/E ratio of 30.06, a PEG ratio of 2.72 and a beta of 0.78.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, July 31st. The business services provider reported $2.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.06 by $0.03. The company had revenue of $4.80 billion during the quarter, compared to the consensus estimate of $4.74 billion. Automatic Data Processing had a net margin of 19.54% and a return on equity of 89.20%. The company’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same period last year, the firm earned $1.89 EPS. As a group, analysts predict that Automatic Data Processing, Inc. will post 10.01 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Friday, September 13th will be issued a dividend of $1.40 per share. The ex-dividend date is Friday, September 13th. This represents a $5.60 annualized dividend and a yield of 2.08%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 62.50%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ADP. Ted Buchan & Co purchased a new stake in Automatic Data Processing during the 2nd quarter worth about $236,000. Advisory Alpha LLC raised its holdings in Automatic Data Processing by 19.1% in the 2nd quarter. Advisory Alpha LLC now owns 1,568 shares of the business services provider’s stock valued at $374,000 after acquiring an additional 252 shares during the last quarter. IMS Capital Management lifted its stake in shares of Automatic Data Processing by 3.8% during the 2nd quarter. IMS Capital Management now owns 9,359 shares of the business services provider’s stock worth $2,476,000 after purchasing an additional 343 shares during the period. Truist Financial Corp boosted its holdings in shares of Automatic Data Processing by 0.7% during the second quarter. Truist Financial Corp now owns 851,390 shares of the business services provider’s stock worth $203,218,000 after purchasing an additional 5,900 shares during the last quarter. Finally, Next Capital Management LLC grew its position in shares of Automatic Data Processing by 5.3% in the second quarter. Next Capital Management LLC now owns 1,442 shares of the business services provider’s stock valued at $344,000 after purchasing an additional 72 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

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.