Cantor Fitzgerald Initiates Coverage on Automatic Data Processing (NASDAQ:ADP)

Research analysts at Cantor Fitzgerald started coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a research report issued on Tuesday,Benzinga reports. The brokerage set an “overweight” rating and a $306.00 price target on the business services provider’s stock. Cantor Fitzgerald’s price target would indicate a potential upside of 18.53% from the stock’s current price.

ADP has been the subject of a number of other research reports. Wells Fargo & Company decreased their price objective on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Citigroup began coverage on Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 target price on the stock. Finally, JPMorgan Chase & Co. reduced their price target on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $306.38.

Automatic Data Processing Trading Up 0.1%

NASDAQ:ADP opened at $258.17 on Tuesday. The stock has a fifty day simple moving average of $258.45 and a 200 day simple moving average of $279.09. The firm has a market capitalization of $104.42 billion, a price-to-earnings ratio of 25.49 and a beta of 0.86. Automatic Data Processing has a 1-year low of $247.18 and a 1-year high of $329.93. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, beating analysts’ consensus estimates of $2.44 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The company had revenue of $5.18 billion during the quarter, compared to analyst estimates of $5.14 billion. During the same period in the prior year, the firm earned $2.33 earnings per share. The business’s quarterly revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts forecast that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing declared that its board has approved a share repurchase program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 806 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the sale, the vice president directly owned 11,187 shares of the company’s stock, valued at $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the transaction, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. This represents a 5.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 2,249 shares of company stock valued at $589,852 over the last quarter. Corporate insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ADP. Vanguard Group Inc. grew its holdings in Automatic Data Processing by 0.9% during the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock valued at $12,235,907,000 after purchasing an additional 389,451 shares during the last quarter. State Street Corp boosted its holdings in shares of Automatic Data Processing by 1.0% during the 2nd quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock worth $5,820,445,000 after buying an additional 187,415 shares during the period. Geode Capital Management LLC grew its stake in Automatic Data Processing by 3.1% in the 2nd quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider’s stock valued at $3,511,698,000 after buying an additional 345,798 shares during the last quarter. Capital Research Global Investors raised its holdings in Automatic Data Processing by 1.5% in the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after acquiring an additional 116,074 shares during the period. Finally, Wellington Management Group LLP lifted its position in Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after acquiring an additional 2,208,927 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.