Automatic Data Processing (NASDAQ:ADP) Upgraded to “Hold” at TD Cowen

TD Cowen upgraded shares of Automatic Data Processing (NASDAQ:ADP) to a hold rating in a research note released on Monday morning,Zacks.com reports.

Several other research analysts also recently weighed in on the stock. Citigroup decreased their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a research report on Thursday, April 30th. Cantor Fitzgerald decreased their price target on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 29th. JPMorgan Chase & Co. decreased their price target on shares of 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. BMO Capital Markets decreased their price target on shares of Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating on the stock in a research report on Tuesday, April 7th. Finally, Wells Fargo & Company upgraded shares of Automatic Data Processing from an “underweight” rating to an “equal weight” rating and set a $214.00 price target on the stock in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $253.50.

Automatic Data Processing Stock Up 3.9%

ADP opened at $222.94 on Monday. 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 has a 1-year low of $188.16 and a 1-year high of $329.93. The company has a market capitalization of $89.12 billion, a PE ratio of 20.80 and a beta of 0.83. The firm’s 50 day simple moving average is $206.29 and its two-hundred day simple moving average is $233.09.

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

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Friday, June 12th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 63.43%.

Insider Activity at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.20% of the stock is owned by insiders.

Institutional Trading of Automatic Data Processing

Institutional investors and hedge funds have recently modified their holdings of the company. Imprint Wealth LLC bought a new stake in shares of Automatic Data Processing during the 3rd quarter valued at $25,000. Cloud Capital Management LLC purchased a new position in Automatic Data Processing during the third quarter valued at $29,000. Cornerstone Financial Management LLC purchased a new position in Automatic Data Processing during the fourth quarter valued at $26,000. Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the 3rd quarter worth $32,000. Finally, Bard Associates Inc. purchased a new stake in Automatic Data Processing in the 4th quarter worth $28,000. 80.03% of the stock is currently owned by institutional investors.

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.