Automatic Data Processing, Inc. (NASDAQ:ADP) Receives $224.29 Consensus Target Price from Analysts

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have received an average rating of “Hold” from the fourteen analysts that are covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, eight have given a hold recommendation and four have issued a buy recommendation on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $224.29.

ADP has been the subject of a number of research analyst reports. BMO Capital Markets upped their price target on shares of Automatic Data Processing from $208.00 to $220.00 and gave the company a “market perform” rating in a report on Thursday, October 28th. Credit Suisse Group downgraded shares of Automatic Data Processing from an “outperform” rating to a “neutral” rating and set a $215.00 price target for the company. in a report on Monday, August 16th. They noted that the move was a valuation call. Morgan Stanley upped their price target on shares of Automatic Data Processing from $215.00 to $235.00 and gave the company an “equal weight” rating in a report on Tuesday, November 16th. Barclays upped their price target on shares of Automatic Data Processing from $227.00 to $247.00 and gave the company an “overweight” rating in a report on Friday, October 29th. Finally, JPMorgan Chase & Co. downgraded shares of Automatic Data Processing from a “neutral” rating to an “underweight” rating and set a $224.00 price target for the company. in a report on Tuesday, August 17th. They noted that the move was a valuation call.

ADP stock traded down $1.77 during trading on Friday, hitting $234.37. The company had a trading volume of 1,511,075 shares, compared to its average volume of 1,644,715. The firm has a market capitalization of $98.76 billion, a price-to-earnings ratio of 37.08, a P/E/G ratio of 2.93 and a beta of 0.76. The business has a 50 day moving average of $215.87 and a 200 day moving average of $207.30. Automatic Data Processing has a fifty-two week low of $159.31 and a fifty-two week high of $241.18. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.56.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Tuesday, October 26th. The business services provider reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.49 by $0.16. The business had revenue of $3.80 billion during the quarter, compared to the consensus estimate of $3.75 billion. Automatic Data Processing had a net margin of 17.55% and a return on equity of 47.31%. The company’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.41 earnings per share. As a group, equities analysts predict that Automatic Data Processing will post 6.77 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Saturday, January 1st. Investors of record on Friday, December 10th will be paid a $1.04 dividend. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.93. The ex-dividend date of this dividend is Thursday, December 9th. This represents a $4.16 dividend on an annualized basis and a yield of 1.77%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 58.86%.

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in shares of Automatic Data Processing by 2.1% during the 2nd quarter. Vanguard Group Inc. now owns 37,963,373 shares of the business services provider’s stock valued at $7,540,285,000 after buying an additional 769,762 shares during the period. BlackRock Inc. boosted its stake in shares of Automatic Data Processing by 2.5% during the 3rd quarter. BlackRock Inc. now owns 31,176,737 shares of the business services provider’s stock valued at $6,232,851,000 after buying an additional 773,928 shares during the period. State Street Corp boosted its stake in shares of Automatic Data Processing by 0.5% during the 2nd quarter. State Street Corp now owns 18,121,048 shares of the business services provider’s stock valued at $3,615,814,000 after buying an additional 95,598 shares during the period. Geode Capital Management LLC boosted its stake in shares of Automatic Data Processing by 1.6% during the 3rd quarter. Geode Capital Management LLC now owns 8,054,624 shares of the business services provider’s stock valued at $1,606,688,000 after buying an additional 129,269 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its stake in shares of Automatic Data Processing by 11.1% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 5,546,626 shares of the business services provider’s stock valued at $1,101,671,000 after buying an additional 555,431 shares during the period. 78.81% of the stock is owned by hedge funds and other institutional investors.

About Automatic Data Processing

Automatic Data Processing, Inc engages in the provision of business outsourcing solutions specializes in cloud-based human capital management. It operates through the following business segments: Employer Services; and Professional Employer Organization Services; and Other. The Employer Services segment provides clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of human resources outsourcing and technology-based human capital management solutions, including strategic, cloud-based platforms.

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Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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