Automatic Data Processing, Inc. (NASDAQ:ADP) Receives $255.42 Consensus PT from Brokerages

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have been given an average rating of “Hold” by the eleven analysts that are currently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have assigned a buy rating to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $255.42.

ADP has been the subject of a number of research analyst reports. Mizuho raised their price objective on Automatic Data Processing from $265.00 to $272.00 and gave the company a “buy” rating in a research report on Monday, March 11th. TD Cowen decreased their price objective on shares of Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating for the company in a research note on Thursday, May 2nd. Barclays lifted their price target on shares of Automatic Data Processing from $280.00 to $282.00 and gave the company an “overweight” rating in a research note on Thursday, May 2nd. Evercore ISI lifted their price objective on shares of Automatic Data Processing from $227.00 to $235.00 and gave the company an “underperform” rating in a report on Tuesday, March 26th. Finally, StockNews.com raised shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a report on Tuesday, June 18th.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $235.67 on Thursday. Automatic Data Processing has a one year low of $205.53 and a one year high of $256.84. The stock’s fifty day moving average is $245.79 and its 200 day moving average is $243.86. The stock has a market cap of $96.46 billion, a P/E ratio of 26.32, a P/E/G ratio of 2.62 and a beta of 0.78. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.01 and a current ratio of 1.01.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, May 1st. The business services provider reported $2.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.79 by $0.09. Automatic Data Processing had a return on equity of 93.09% and a net margin of 19.56%. The business had revenue of $5.30 billion during the quarter, compared to analyst estimates of $5.22 billion. During the same quarter in the prior year, the business posted $2.52 EPS. Automatic Data Processing’s revenue for the quarter was up 7.6% compared to the same quarter last year. Sell-side analysts anticipate that Automatic Data Processing will post 9.16 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, July 1st. Shareholders of record on Friday, June 14th were issued a $1.40 dividend. This represents a $5.60 annualized dividend and a yield of 2.38%. The ex-dividend date of this dividend was Friday, June 14th. Automatic Data Processing’s dividend payout ratio is currently 62.50%.

Institutional Investors Weigh In On Automatic Data Processing

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in shares of Automatic Data Processing by 0.4% during the first quarter. Vanguard Group Inc. now owns 39,769,440 shares of the business services provider’s stock valued at $9,932,020,000 after buying an additional 173,298 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Automatic Data Processing by 4.8% during the fourth quarter. Wellington Management Group LLP now owns 5,492,425 shares of the business services provider’s stock valued at $1,279,570,000 after buying an additional 249,566 shares during the last quarter. Capital Research Global Investors grew its holdings in shares of 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 valued at $905,354,000 after buying an additional 81,869 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Automatic Data Processing by 18.3% during the third quarter. Ameriprise Financial Inc. now owns 3,576,575 shares of the business services provider’s stock valued at $855,287,000 after buying an additional 553,946 shares during the last quarter. Finally, Nordea Investment Management AB grew its holdings 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 valued at $678,601,000 after buying an additional 589,831 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

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.