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

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have received a consensus recommendation of “Hold” from the eleven analysts that are presently covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $255.42.

ADP has been the subject of several analyst reports. Mizuho increased their price target on shares of Automatic Data Processing from $265.00 to $272.00 and gave the stock a “buy” rating in a report on Monday, March 11th. Barclays increased 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 report on Thursday, May 2nd. StockNews.com upgraded shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a research report on Tuesday, June 18th. TD Cowen lowered 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. Finally, Evercore ISI boosted their price objective on shares of Automatic Data Processing from $227.00 to $235.00 and gave the company an “underperform” rating in a research note on Tuesday, March 26th.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $238.02 on Thursday. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.01 and a quick ratio of 1.01. Automatic Data Processing has a 1 year low of $205.53 and a 1 year high of $256.84. The company has a market capitalization of $97.42 billion, a PE ratio of 26.56, a P/E/G ratio of 2.73 and a beta of 0.78. The company has a fifty day moving average of $246.07 and a two-hundred day moving average of $243.83.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, May 1st. The business services provider reported $2.88 EPS for the quarter, beating analysts’ consensus estimates of $2.79 by $0.09. Automatic Data Processing had a net margin of 19.56% and a return on equity of 93.09%. The business had revenue of $5.30 billion during the quarter, compared to analysts’ expectations of $5.22 billion. During the same period in the prior year, the company earned $2.52 earnings per share. The business’s revenue was up 7.6% compared to the same quarter last year. As a group, analysts expect that Automatic Data Processing will post 9.18 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Friday, June 14th will be given a $1.40 dividend. This represents a $5.60 annualized dividend and a yield of 2.35%. The ex-dividend date of this dividend is Friday, June 14th. Automatic Data Processing’s dividend payout ratio (DPR) is 62.50%.

Institutional Trading of Automatic Data Processing

A number of institutional investors have recently made changes to their positions in the stock. IMS Capital Management lifted its stake in shares of Automatic Data Processing by 3.2% in the 1st quarter. IMS Capital Management now owns 9,016 shares of the business services provider’s stock worth $2,252,000 after acquiring an additional 283 shares during the period. Jackson Wealth Management LLC lifted its stake in shares of Automatic Data Processing by 14.3% in the 1st quarter. Jackson Wealth Management LLC now owns 16,148 shares of the business services provider’s stock worth $4,033,000 after acquiring an additional 2,019 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Automatic Data Processing by 9.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,754 shares of the business services provider’s stock worth $424,000 after acquiring an additional 156 shares during the period. Cambridge Trust Co. lifted its stake in shares of Automatic Data Processing by 18.9% in the 1st quarter. Cambridge Trust Co. now owns 67,642 shares of the business services provider’s stock worth $16,893,000 after acquiring an additional 10,737 shares during the period. Finally, Pathway Financial Advisers LLC acquired a new stake in shares of Automatic Data Processing in the 1st quarter worth approximately $36,000. 80.03% of the stock is owned by institutional investors and hedge funds.

About Automatic Data Processing

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.