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

Automatic Data Processing, Inc. (NASDAQ:ADP)’s share price reached a new 52-week low during trading on Wednesday . The company traded as low as $234.81 and last traded at $235.08, with a volume of 4377047 shares traded. The stock had previously closed at $247.56.

Analyst Upgrades and Downgrades

ADP has been the topic of a number of recent research reports. Morgan Stanley reduced their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Citigroup decreased their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. JPMorgan Chase & Co. dropped their price target on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $290.83.

Automatic Data Processing Stock Performance

The company has a market cap of $93.15 billion, a P/E ratio of 22.25 and a beta of 0.85. 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 company has a 50 day moving average price of $257.09 and a 200-day moving average price of $276.19.

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

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

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

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 806 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the transaction, the vice president directly owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. This trade represents a 6.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing 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 transaction, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 2,249 shares of company stock valued at $589,852 over the last 90 days. 0.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Automatic Data Processing

Several large investors have recently modified their holdings of ADP. SGL Investment Advisors Inc. raised its position in shares of Automatic Data Processing by 3.3% during the fourth quarter. SGL Investment Advisors Inc. now owns 1,762 shares of the business services provider’s stock worth $412,000 after purchasing an additional 57 shares during the period. Principle Wealth Partners LLC boosted its position in shares of Automatic Data Processing by 5.8% in the 4th quarter. Principle Wealth Partners LLC now owns 10,927 shares of the business services provider’s stock valued at $2,811,000 after purchasing an additional 596 shares during the period. Axxcess Wealth Management LLC increased its stake in Automatic Data Processing by 319.0% in the 4th quarter. Axxcess Wealth Management LLC now owns 138,479 shares of the business services provider’s stock worth $35,621,000 after purchasing an additional 105,426 shares in the last quarter. Kingdom Financial Group LLC. acquired a new stake in Automatic Data Processing during the 4th quarter worth about $414,000. Finally, Meiji Yasuda Asset Management Co Ltd. raised its holdings in Automatic Data Processing by 0.7% during the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 28,604 shares of the business services provider’s stock worth $7,358,000 after buying an additional 186 shares during the period. 80.03% of the stock is owned by institutional investors.

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.