Automatic Data Processing (ADP) Expected to Post Q1 2020 Earnings of $1.24 Per Share

Automatic Data Processing (NASDAQ:ADP) – Stock analysts at Wedbush issued their Q1 2020 earnings per share estimates for Automatic Data Processing in a research note issued to investors on Tuesday, October 16th, according to Zacks Investment Research. Wedbush analyst M. Katri expects that the business services provider will post earnings per share of $1.24 for the quarter. Wedbush also issued estimates for Automatic Data Processing’s Q2 2020 earnings at $1.28 EPS, Q3 2020 earnings at $1.91 EPS and Q4 2020 earnings at $1.33 EPS.

ADP has been the topic of several other reports. Jefferies Financial Group began coverage on shares of Automatic Data Processing in a research note on Monday, October 1st. They set a “hold” rating and a $160.00 price objective on the stock. Moffett Nathanson initiated coverage on shares of Automatic Data Processing in a report on Thursday, October 4th. They set a “buy” rating and a $180.00 target price for the company. Zacks Investment Research downgraded shares of Automatic Data Processing from a “hold” rating to a “sell” rating in a report on Thursday, October 4th. Guggenheim assumed coverage on shares of Automatic Data Processing in a report on Monday, August 20th. They set a “buy” rating and a $175.00 target price for the company. Finally, BidaskClub raised shares of Automatic Data Processing from a “buy” rating to a “strong-buy” rating in a report on Wednesday, August 15th. Nine investment analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company’s stock. Automatic Data Processing currently has an average rating of “Buy” and an average price target of $148.69.

ADP traded down $0.70 during trading on Wednesday, hitting $147.19. The company had a trading volume of 2,371,359 shares, compared to its average volume of 2,251,837. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.43. Automatic Data Processing has a one year low of $107.61 and a one year high of $153.51. The stock has a market capitalization of $64.92 billion, a P/E ratio of 33.84, a P/E/G ratio of 2.26 and a beta of 0.91.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, October 31st. The business services provider reported $1.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.11 by $0.09. The firm had revenue of $3.32 billion for the quarter, compared to analysts’ expectations of $3.28 billion. Automatic Data Processing had a net margin of 12.71% and a return on equity of 50.96%. The business’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same period last year, the firm earned $0.94 earnings per share.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, January 1st. Investors of record on Friday, December 14th will be paid a dividend of $0.79 per share. The ex-dividend date is Thursday, December 13th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.69. This represents a $3.16 annualized dividend and a yield of 2.15%. Automatic Data Processing’s dividend payout ratio is currently 63.45%.

In related news, insider Michael A. Bonarti sold 2,334 shares of the firm’s stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $144.77, for a total transaction of $337,893.18. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Brock Albinson sold 3,345 shares of Automatic Data Processing stock in a transaction dated Tuesday, September 4th. The stock was sold at an average price of $144.35, for a total transaction of $482,850.75. Following the completion of the transaction, the vice president now owns 6,081 shares of the company’s stock, valued at approximately $877,792.35. The disclosure for this sale can be found here. Over the last three months, insiders have sold 117,539 shares of company stock worth $17,336,818. 0.33% of the stock is owned by insiders.

Hedge funds have recently added to or reduced their stakes in the company. Atlantic Trust LLC bought a new stake in Automatic Data Processing during the second quarter valued at approximately $104,000. Integrated Investment Consultants LLC bought a new stake in shares of Automatic Data Processing in the 2nd quarter worth approximately $111,000. Willingdon Wealth Management lifted its holdings in shares of Automatic Data Processing by 328.5% in the 3rd quarter. Willingdon Wealth Management now owns 857 shares of the business services provider’s stock worth $129,000 after acquiring an additional 657 shares during the last quarter. Jolley Asset Management LLC bought a new stake in shares of Automatic Data Processing in the 2nd quarter worth approximately $117,000. Finally, Fort L.P. bought a new stake in shares of Automatic Data Processing in the 2nd quarter worth approximately $119,000. Institutional investors own 77.94% of the company’s stock.

About Automatic Data Processing

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

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