Automatic Data Processing, Inc. (NASDAQ:ADP) Receives $306.42 Average Target Price from Brokerages

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have earned an average recommendation of “Hold” from the thirteen analysts that are presently covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and two have given a buy rating to the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $306.4167.

ADP has been the subject of a number of research analyst reports. UBS Group reduced their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a research report on Wednesday, September 17th. Citigroup started coverage on shares of Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target for the company. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday. Finally, JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $252.88 on Monday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. Automatic Data Processing has a 12-month low of $247.18 and a 12-month high of $329.93. The business’s 50 day moving average is $258.23 and its two-hundred day moving average is $284.70. The company has a market capitalization of $102.28 billion, a P/E ratio of 24.96 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business had revenue of $5.18 billion during the quarter, compared to the consensus estimate of $5.14 billion. During the same period in the prior year, the company posted $2.33 EPS. The business’s quarterly revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Analysts expect that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, January 1st. Investors of record on Friday, December 12th were paid a $1.70 dividend. The ex-dividend date of this dividend was Friday, December 12th. This represents a $6.80 annualized dividend and a yield of 2.7%. This is an increase from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s dividend payout ratio is currently 67.13%.

Institutional Investors Weigh In On Automatic Data Processing

Large investors have recently modified their holdings of the business. Jacobsen Capital Management increased its stake in shares of Automatic Data Processing by 3.8% during the 2nd quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock valued at $280,000 after acquiring an additional 33 shares during the last quarter. Signature Wealth Management Group grew its holdings in Automatic Data Processing by 2.3% in the second quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock valued at $447,000 after purchasing an additional 33 shares during the period. Bangor Savings Bank increased its position in Automatic Data Processing by 0.7% during the second quarter. Bangor Savings Bank now owns 4,907 shares of the business services provider’s stock worth $1,513,000 after purchasing an additional 34 shares during the last quarter. Ameritas Advisory Services LLC raised its stake in Automatic Data Processing by 2.1% during the second quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider’s stock worth $502,000 after purchasing an additional 34 shares during the period. Finally, PGIM Custom Harvest LLC raised its stake in Automatic Data Processing by 4.9% during the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock worth $223,000 after purchasing an additional 34 shares during the period. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.