Automatic Data Processing (NASDAQ:ADP) Posts Earnings Results, Beats Expectations By $0.05 EPS

Automatic Data Processing (NASDAQ:ADP) issued its quarterly earnings data on Wednesday. The business services provider reported $2.35 earnings per share for the quarter, topping the consensus estimate of $2.30 by $0.05, Zacks reports. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. Automatic Data Processing updated its FY 2025 guidance to 9.820-10.010 EPS.

Automatic Data Processing Trading Up 3.6 %

Shares of ADP stock traded up $10.83 during trading hours on Wednesday, reaching $309.14. The company had a trading volume of 560,965 shares, compared to its average volume of 1,608,569. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.01 and a quick ratio of 1.01. Automatic Data Processing has a 1-year low of $231.27 and a 1-year high of $311.67. The company has a 50 day moving average of $297.19 and a 200 day moving average of $283.65. The firm has a market cap of $125.96 billion, a price-to-earnings ratio of 33.00, a P/E/G ratio of 3.45 and a beta of 0.79.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be given a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a dividend yield of 1.99%. The ex-dividend date is Friday, March 14th. Automatic Data Processing’s payout ratio is 65.74%.

Analyst Upgrades and Downgrades

ADP has been the subject of several research analyst reports. Royal Bank of Canada lifted their price objective on Automatic Data Processing from $267.00 to $315.00 and gave the company a “sector perform” rating in a research report on Thursday, October 31st. StockNews.com cut Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Monday. Jefferies Financial Group upped their price target on shares of Automatic Data Processing from $260.00 to $290.00 and gave the stock a “hold” rating in a research report on Tuesday, October 22nd. TD Cowen raised their price objective on shares of Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a research report on Friday, November 1st. Finally, UBS Group boosted their target price on shares of Automatic Data Processing from $270.00 to $295.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 22nd. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $289.91.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 362 shares of the stock in a transaction dated 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 owns 13,706 shares in the company, valued at approximately $4,027,233.98. This represents a 2.57 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Sreenivasa Kutam sold 38,975 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total transaction of $11,692,500.00. Following the completion of the sale, the vice president now owns 32,604 shares in the company, valued at $9,781,200. This trade represents a 54.45 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 42,129 shares of company stock worth $12,604,872. 0.21% of the stock is owned by insiders.

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.