Cantor Fitzgerald Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $244.00

Automatic Data Processing (NASDAQ:ADP) had its target price decreased by Cantor Fitzgerald from $306.00 to $244.00 in a research report report published on Tuesday morning,Benzinga reports. Cantor Fitzgerald currently has an overweight rating on the business services provider’s stock.

Other analysts also recently issued reports about the stock. JPMorgan Chase & Co. lowered their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Stifel Nicolaus lowered their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a report on Monday, February 9th. Citigroup lowered their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Guggenheim began coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 price objective on the stock. Finally, Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $273.85.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $198.53 on Tuesday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The company has a market capitalization of $79.94 billion, a P/E ratio of 19.09 and a beta of 0.85. The company’s 50 day moving average price is $207.68 and its two-hundred day moving average price is $241.59. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 the consensus estimate of $5.34 billion. During the same period last year, the company earned $2.35 earnings per share. The firm’s revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts expect that Automatic Data Processing will post 10.96 earnings per share for the current fiscal year.

Automatic Data Processing declared that its board has authorized a stock repurchase plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

Automatic Data Processing Announces Dividend

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 paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 3.4%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Insider Activity at Automatic Data Processing

In related 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 value of $113,188.35. Following the completion of the transaction, the vice president directly owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,809 shares of company stock valued at $410,410. 0.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds and other institutional investors have recently made changes to their positions in the company. Exchange Traded Concepts LLC boosted its position in Automatic Data Processing by 141.5% during the third quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider’s stock worth $3,899,000 after purchasing an additional 7,782 shares during the period. Mitchell Capital Management Co. boosted its position in Automatic Data Processing by 325.0% during the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider’s stock worth $1,996,000 after purchasing an additional 5,200 shares during the period. Atlantic Union Bankshares Corp boosted its position in Automatic Data Processing by 136.0% during the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider’s stock worth $14,080,000 after purchasing an additional 27,644 shares during the period. CIBC Asset Management Inc boosted its position in Automatic Data Processing by 2.6% during the third quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock worth $53,875,000 after purchasing an additional 4,720 shares during the period. Finally, Thrivent Financial for Lutherans boosted its position in Automatic Data Processing by 18.4% during the third quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider’s stock worth $40,566,000 after purchasing an additional 21,444 shares during the period. 80.03% of the stock is 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.