Automatic Data Processing (NASDAQ:ADP) Sets New 12-Month Low – Here’s Why

Automatic Data Processing, Inc. (NASDAQ:ADP) shares reached a new 52-week low during trading on Wednesday . The stock traded as low as $197.08 and last traded at $199.9980, with a volume of 469286 shares. The stock had previously closed at $203.18.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Stifel Nicolaus reduced their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research report on Monday, February 9th. Guggenheim initiated coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They set a “buy” rating and a $270.00 target price on the stock. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. JPMorgan Chase & Co. decreased their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Finally, Morgan Stanley lowered their price target on shares of 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. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $284.77.

Automatic Data Processing Price Performance

The company has a market capitalization of $81.14 billion, a PE ratio of 19.39 and a beta of 0.86. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The stock has a fifty day simple moving average of $221.62 and a 200-day simple moving average of $251.82.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the business posted $2.35 EPS. The business’s revenue for the quarter 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. Equities analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

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

Insider Activity at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares of the company’s stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president owned 15,310 shares in the company, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,058 shares of company stock worth $1,000,263 in the last ninety days. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds have recently made changes to their positions in the company. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing in the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new position in Automatic Data Processing during the 4th quarter worth approximately $26,000. Howard Hughes Medical Institute acquired a new position in Automatic Data Processing during the second quarter worth approximately $27,000. TruNorth Capital Management LLC acquired a new position in Automatic Data Processing during the third quarter worth approximately $28,000. Finally, Bard Associates Inc. purchased a new stake in Automatic Data Processing in the fourth quarter valued at approximately $28,000. 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.