Automatic Data Processing (NASDAQ:ADP) Receives $179.56 Average PT from Brokerages

Shares of Automatic Data Processing (NASDAQ:ADP) have been assigned a consensus rating of “Hold” from the fourteen research firms that are currently covering the firm, Marketbeat Ratings reports. Nine analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $179.56.

ADP has been the topic of a number of recent analyst reports. ValuEngine raised shares of Automatic Data Processing from a “sell” rating to a “hold” rating in a research report on Tuesday. Cowen began coverage on shares of Automatic Data Processing in a research report on Wednesday, September 11th. They issued an “outperform” rating and a $195.00 price objective for the company. Morgan Stanley increased their price objective on shares of Automatic Data Processing from $150.00 to $174.00 and gave the company an “equal weight” rating in a research note on Thursday, August 15th. Credit Suisse Group reissued a “buy” rating and set a $185.00 target price on shares of Automatic Data Processing in a research report on Monday, November 4th. Finally, Bank of America cut shares of Automatic Data Processing from a “buy” rating to a “neutral” rating in a research report on Wednesday, September 11th.

In other news, CEO Carlos A. Rodriguez sold 49,392 shares of the stock in a transaction on Wednesday, September 11th. The stock was sold at an average price of $161.70, for a total transaction of $7,986,686.40. Following the completion of the transaction, the chief executive officer now owns 132,338 shares in the company, valued at approximately $21,399,054.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Carlos A. Rodriguez sold 48,571 shares of the stock in a transaction on Wednesday, November 13th. The stock was sold at an average price of $168.51, for a total value of $8,184,699.21. Following the transaction, the chief executive officer now owns 144,899 shares of the company’s stock, valued at approximately $24,416,930.49. The disclosure for this sale can be found here. 0.31% of the stock is owned by corporate insiders.

Institutional investors have recently made changes to their positions in the stock. Nuveen Asset Management LLC boosted its position in Automatic Data Processing by 40,836.2% during the second quarter. Nuveen Asset Management LLC now owns 4,719,538 shares of the business services provider’s stock worth $780,281,000 after purchasing an additional 4,708,009 shares during the period. Vanguard Group Inc. lifted its stake in shares of Automatic Data Processing by 1.7% during the 2nd quarter. Vanguard Group Inc. now owns 38,214,507 shares of the business services provider’s stock valued at $6,318,005,000 after buying an additional 644,178 shares in the last quarter. Eagle Asset Management Inc. boosted its holdings in Automatic Data Processing by 222.9% in the 3rd quarter. Eagle Asset Management Inc. now owns 807,822 shares of the business services provider’s stock worth $130,398,000 after buying an additional 557,645 shares during the period. Morgan Stanley boosted its holdings in Automatic Data Processing by 6.5% in the 2nd quarter. Morgan Stanley now owns 8,414,928 shares of the business services provider’s stock worth $1,391,241,000 after buying an additional 516,484 shares during the period. Finally, Investec Asset Management LTD grew its stake in Automatic Data Processing by 217.5% in the 2nd quarter. Investec Asset Management LTD now owns 648,507 shares of the business services provider’s stock valued at $40,267,000 after buying an additional 444,270 shares in the last quarter. Institutional investors and hedge funds own 80.19% of the company’s stock.

NASDAQ ADP traded down $1.46 on Tuesday, reaching $167.13. The company had a trading volume of 2,931,593 shares, compared to its average volume of 1,939,954. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.19. The company’s fifty day moving average is $165.73 and its 200 day moving average is $164.76. Automatic Data Processing has a 52-week low of $121.40 and a 52-week high of $174.50. The stock has a market capitalization of $72.32 billion, a P/E ratio of 30.67, a P/E/G ratio of 2.13 and a beta of 0.88.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 30th. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.33 by $0.01. The firm had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. Automatic Data Processing had a net margin of 16.52% and a return on equity of 46.94%. The business’s revenue was up 5.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.20 EPS. On average, research analysts expect that Automatic Data Processing will post 6.17 EPS for the current year.

Automatic Data Processing declared that its board has authorized a share buyback plan on Tuesday, November 12th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the business services provider to repurchase up to 6.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 2.18%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $0.79. The ex-dividend date of this dividend is Thursday, December 12th. Automatic Data Processing’s payout ratio is presently 57.98%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

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Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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