Analysts Set Automatic Data Processing, Inc. (NASDAQ:ADP) Target Price at $249.00

Automatic Data Processing, Inc. (NASDAQ:ADP) has received an average recommendation of “Hold” from the fifteen brokerages that are presently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, ten have given a hold recommendation, three have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among analysts that have covered the stock in the last year is $249.00.

A number of analysts recently issued reports on the company. TD Cowen raised Automatic Data Processing to a “hold” rating in a research note on Monday, May 18th. Guggenheim began coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They set a “buy” rating and a $270.00 price target on the stock. Mizuho dropped their price target on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. UBS Group boosted their price target on Automatic Data Processing from $210.00 to $218.00 and gave the company a “neutral” rating in a research note on Thursday, April 30th. Finally, Stifel Nicolaus dropped their price target on Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th.

Insider Buying and Selling

In other news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several hedge funds have recently made changes to their positions in ADP. Northwestern Mutual Wealth Management Co. increased its stake in shares of Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after buying an additional 3,415,576 shares during the period. Cardano Risk Management B.V. increased its stake in shares of Automatic Data Processing by 950.1% during the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock valued at $916,557,000 after buying an additional 3,223,855 shares during the period. Norges Bank bought a new stake in shares of Automatic Data Processing during the fourth quarter valued at approximately $721,738,000. Wellington Management Group LLP boosted its position in shares of Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock valued at $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Finally, Clearbridge Investments LLC boosted its position in shares of Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock valued at $434,151,000 after purchasing an additional 964,405 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 1.5%

ADP opened at $227.75 on Thursday. The firm’s 50-day simple moving average is $208.90 and its 200-day simple moving average is $230.27. The firm has a market cap of $91.04 billion, a price-to-earnings ratio of 21.25 and a beta of 0.84. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. Automatic Data Processing has a twelve month low of $188.16 and a twelve month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the company posted $3.06 EPS. The company’s revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Equities research analysts anticipate that Automatic Data Processing will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Friday, June 12th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 63.43%.

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.