Dbs Bank Upgrades Automatic Data Processing (NASDAQ:ADP) to “Hold”

Dbs Bank upgraded shares of Automatic Data Processing (NASDAQ:ADP) to a hold rating in a research note released on Thursday morning,Zacks.com reports.

A number of other equities analysts have also recently commented on the company. BMO Capital Markets upgraded Automatic Data Processing to a “hold” rating and set a $340.00 target price for the company in a report on Thursday, July 10th. Royal Bank Of Canada restated a “sector perform” rating and set a $315.00 target price on shares of Automatic Data Processing in a report on Thursday, June 5th. Morgan Stanley raised their target price on Automatic Data Processing from $310.00 to $311.00 and gave the company an “equal weight” rating in a report on Thursday, July 31st. Stifel Nicolaus raised their target price on Automatic Data Processing from $305.00 to $318.00 and gave the company a “hold” rating in a report on Thursday, July 31st. Finally, TD Securities raised their target price on Automatic Data Processing from $298.00 to $321.00 and gave the company a “hold” rating in a report on Wednesday, May 21st. Two investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $317.00.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $304.94 on Thursday. The stock has a market cap of $123.51 billion, a PE ratio of 30.56, a P/E/G ratio of 2.83 and a beta of 0.81. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing has a twelve month low of $267.25 and a twelve month high of $329.93. The stock has a fifty day simple moving average of $305.08 and a 200-day simple moving average of $305.63.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping analysts’ consensus estimates of $2.23 by $0.03. The business had revenue of $5.13 billion during the quarter, compared to analysts’ expectations of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The company’s revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the business posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be given a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.0%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 61.72%.

Institutional Investors Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently made changes to their positions in ADP. Laurel Wealth Advisors LLC raised its position in shares of Automatic Data Processing by 30,110.7% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after acquiring an additional 4,653,304 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Automatic Data Processing by 34,655.1% during the 1st quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider’s stock worth $886,345,000 after acquiring an additional 2,892,660 shares in the last quarter. Norges Bank acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $696,841,000. Nuveen LLC acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth about $661,771,000. Finally, Northern Trust Corp raised its position in shares of Automatic Data Processing by 17.1% during the 4th quarter. Northern Trust Corp now owns 6,174,419 shares of the business services provider’s stock worth $1,807,438,000 after acquiring an additional 902,354 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.