Automatic Data Processing, Inc. (NASDAQ:ADP) Receives $254.40 Consensus Target Price from Brokerages

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have received an average recommendation of “Hold” from the sixteen brokerages that are covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $253.50.

Several analysts recently issued reports on the company. Argus cut their target price on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a research note on Tuesday. Robert W. Baird cut their target price on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. TD Cowen raised their target price on Automatic Data Processing from $208.00 to $216.00 and gave the stock a “hold” rating in a research note on Thursday, April 30th. Jefferies Financial Group cut their target price on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Finally, Guggenheim assumed coverage on Automatic Data Processing in a research note on Thursday, March 19th. They issued a “buy” rating and a $270.00 target price on the stock.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the sale, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,809 shares of company stock worth $410,410 over the last three months. Company insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several institutional investors and hedge funds have recently bought and sold shares of ADP. Mitchell Capital Management Co. lifted its holdings in shares of Automatic Data Processing by 325.0% during the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider’s stock valued at $1,996,000 after purchasing an additional 5,200 shares during the last quarter. Atlantic Union Bankshares Corp raised its holdings in Automatic Data Processing by 136.0% in the 3rd quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider’s stock worth $14,080,000 after acquiring an additional 27,644 shares during the last quarter. CIBC Asset Management Inc raised its holdings in Automatic Data Processing by 2.6% in the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock worth $53,875,000 after acquiring an additional 4,720 shares during the last quarter. Thrivent Financial for Lutherans raised its holdings in Automatic Data Processing by 18.4% in the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider’s stock worth $40,566,000 after acquiring an additional 21,444 shares during the last quarter. Finally, Hilltop Holdings Inc. purchased a new position in Automatic Data Processing in the 3rd quarter worth approximately $5,292,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 0.3%

Shares of NASDAQ:ADP opened at $210.60 on Friday. The stock’s 50-day moving average price is $206.59 and its 200-day moving average price is $237.47. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $329.93. The stock has a market capitalization of $84.18 billion, a P/E ratio of 19.65 and a beta of 0.83. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm had revenue of $5.94 billion for the quarter, compared to analysts’ expectations of $5.85 billion. During the same period last year, the firm earned $3.06 earnings per share. The company’s revenue for the quarter was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts anticipate that Automatic Data Processing will post 11.07 earnings per share for the current year.

Automatic Data Processing announced that its Board of Directors has approved a stock buyback program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 3.2%. Automatic Data Processing’s dividend payout ratio (DPR) is 63.43%.

About Automatic Data Processing

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.