Automatic Data Processing (NASDAQ:ADP) Downgraded by Jefferies Financial Group to Moderate Sell

Automatic Data Processing (NASDAQ:ADP) was downgraded by investment analysts at Jefferies Financial Group from a “hold” rating to a “moderate sell” rating in a research note issued on Monday,Zacks.com reports.

ADP has been the subject of a number of other research reports. Dbs Bank upgraded Automatic Data Processing to a “hold” rating in a research note on Thursday, August 21st. UBS Group decreased their price target on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, September 17th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday. Citigroup assumed coverage on shares of Automatic Data Processing in a report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 target price for the company. Finally, Wells Fargo & Company lowered their price target on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average target price of $306.42.

Automatic Data Processing Price Performance

Shares of ADP opened at $262.17 on Monday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing has a 1-year low of $247.18 and a 1-year high of $329.93. The stock has a market cap of $106.03 billion, a PE ratio of 25.88 and a beta of 0.86. The firm has a fifty day moving average price of $264.81 and a 200 day moving average price of $289.69.

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

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds have recently added to or reduced their stakes in the company. Activest Wealth Management raised its stake in shares of Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock worth $25,000 after buying an additional 78 shares in the last quarter. Imprint Wealth LLC purchased a new position in Automatic Data Processing in the third quarter worth $25,000. Harbor Asset Planning Inc. purchased a new position in Automatic Data Processing in the second quarter worth $26,000. Mid American Wealth Advisory Group Inc. acquired a new stake in Automatic Data Processing in the second quarter valued at $26,000. Finally, Howard Hughes Medical Institute purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth $27,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.