Automatic Data Processing (NASDAQ:ADP) Hits New 52-Week Low – Time to Sell?

Automatic Data Processing, Inc. (NASDAQ:ADP) reached a new 52-week low during trading on Wednesday . The company traded as low as $199.78 and last traded at $200.7150, with a volume of 725969 shares. The stock had previously closed at $204.89.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Stifel Nicolaus dropped their price objective on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. Morgan Stanley reduced their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Finally, Guggenheim initiated coverage on Automatic Data Processing in a research report on Thursday, March 19th. They set a “buy” rating and a $270.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $288.46.

Automatic Data Processing Trading Down 2.1%

The company’s 50-day simple moving average is $227.18 and its 200 day simple moving average is $255.08. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $80.74 billion, a PE ratio of 19.28 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the previous year, the company earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.4%. Automatic Data Processing’s payout ratio is presently 65.38%.

Automatic Data Processing announced that its board has authorized a stock repurchase program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to buy up to 5.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insider Activity at Automatic Data Processing

In other news, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the transaction, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 4,058 shares of company stock worth $1,000,263. Corporate insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Large investors have recently added to or reduced their stakes in the company. J. Derek Lewis & Associates Inc. purchased a new stake in Automatic Data Processing in the fourth quarter valued at approximately $211,000. Stance Capital LLC raised its position in Automatic Data Processing by 251.5% during the 4th quarter. Stance Capital LLC now owns 16,093 shares of the business services provider’s stock worth $4,140,000 after buying an additional 11,515 shares during the last quarter. Cornerstone Planning LLC acquired a new stake in Automatic Data Processing during the 4th quarter valued at approximately $3,249,000. Osbon Capital Management LLC acquired a new stake in Automatic Data Processing during the 4th quarter valued at approximately $52,000. Finally, World Investment Advisors boosted its holdings in shares of Automatic Data Processing by 164.0% in the 4th quarter. World Investment Advisors now owns 28,062 shares of the business services provider’s stock valued at $7,219,000 after acquiring an additional 17,434 shares during the last quarter. Hedge funds and other institutional investors 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.