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

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price reached a new 52-week low 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.

Analysts Set New Price Targets

A number of research analysts recently issued reports on ADP shares. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Wells Fargo & Company reduced their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Morgan Stanley decreased their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a report on Thursday, January 29th. Jefferies Financial Group restated an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Finally, Cantor Fitzgerald began coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and a consensus target price of $288.46.

Automatic Data Processing Stock Performance

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

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

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing declared that its Board of Directors has authorized a stock buyback plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, VP David Foskett sold 266 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 4,058 shares of company stock worth $1,000,263. 0.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of Automatic Data Processing by 0.9% in 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 period. State Street Corp raised its position in shares of Automatic Data Processing by 0.7% during the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider’s stock worth $4,903,769,000 after purchasing an additional 133,039 shares during the last quarter. Geode Capital Management LLC lifted its stake in Automatic Data Processing by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock valued at $2,977,777,000 after buying an additional 136,876 shares in the last quarter. Capital Research Global Investors boosted its holdings in Automatic Data Processing by 4.6% in the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock worth $2,159,088,000 after buying an additional 372,413 shares during the last quarter. Finally, Wellington Management Group LLP boosted its holdings in Automatic Data Processing by 8.0% in the 4th quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock worth $1,896,944,000 after buying an additional 544,210 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.