Brokerages Set Automatic Data Processing (ADP) PT at $159.00

Automatic Data Processing (NASDAQ:ADP) has been assigned an average recommendation of “Buy” from the sixteen brokerages that are covering the stock, MarketBeat Ratings reports. Nine analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $157.42.

ADP has been the topic of a number of recent research reports. Zacks Investment Research upgraded shares of Automatic Data Processing from a “sell” rating to a “hold” rating in a report on Thursday, January 24th. BidaskClub downgraded shares of Automatic Data Processing from a “strong-buy” rating to a “buy” rating in a report on Friday, April 5th. Sanford C. Bernstein downgraded shares of Automatic Data Processing from an “outperform” rating to a “market perform” rating in a report on Tuesday, April 30th. Citigroup lifted their price objective on shares of Automatic Data Processing from $147.00 to $162.00 and gave the company a “neutral” rating in a report on Thursday, May 2nd. Finally, Barclays raised their target price on shares of Automatic Data Processing from $168.00 to $180.00 and gave the company an “overweight” rating in a research note on Monday, May 6th.

Shares of NASDAQ ADP traded up $0.19 during midday trading on Friday, reaching $161.72. The company’s stock had a trading volume of 1,660,319 shares, compared to its average volume of 1,992,689. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.38. Automatic Data Processing has a fifty-two week low of $121.40 and a fifty-two week high of $165.50. The company has a market capitalization of $70.39 billion, a PE ratio of 37.18, a price-to-earnings-growth ratio of 2.25 and a beta of 0.95.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, May 1st. The business services provider reported $1.77 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.69 by $0.08. Automatic Data Processing had a net margin of 13.76% and a return on equity of 50.53%. The company had revenue of $3.85 billion for the quarter, compared to the consensus estimate of $3.91 billion. During the same period last year, the company earned $1.57 earnings per share. The firm’s revenue was up 4.2% compared to the same quarter last year. As a group, sell-side analysts expect that Automatic Data Processing will post 5.44 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be paid a $0.79 dividend. The ex-dividend date of this dividend is Thursday, June 13th. This represents a $3.16 annualized dividend and a dividend yield of 1.95%. Automatic Data Processing’s dividend payout ratio is presently 72.64%.

In other Automatic Data Processing news, VP Donald Weinstein sold 1,706 shares of Automatic Data Processing stock in a transaction on Tuesday, April 23rd. The shares were sold at an average price of $165.01, for a total transaction of $281,507.06. Following the completion of the transaction, the vice president now directly owns 26,220 shares of the company’s stock, valued at $4,326,562.20. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Stuart Sackman sold 1,478 shares of Automatic Data Processing stock in a transaction on Friday, March 15th. The stock was sold at an average price of $155.13, for a total transaction of $229,282.14. Following the transaction, the vice president now directly owns 24,122 shares of the company’s stock, valued at $3,742,045.86. The disclosure for this sale can be found here. Insiders sold 30,456 shares of company stock valued at $5,010,669 over the last three months. 0.33% of the stock is owned by company insiders.

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc boosted its position in shares of Automatic Data Processing by 1.2% in the third quarter. Vanguard Group Inc now owns 36,946,069 shares of the business services provider’s stock valued at $5,566,295,000 after acquiring an additional 425,007 shares during the period. BlackRock Inc. boosted its position in shares of Automatic Data Processing by 5.4% in the fourth quarter. BlackRock Inc. now owns 30,996,337 shares of the business services provider’s stock valued at $4,064,239,000 after acquiring an additional 1,587,214 shares during the period. Oregon Public Employees Retirement Fund boosted its position in shares of Automatic Data Processing by 18,918.6% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 23,462,482 shares of the business services provider’s stock valued at $179,000 after acquiring an additional 23,339,116 shares during the period. Lunia Capital LP boosted its position in shares of Automatic Data Processing by 14,251.9% in the fourth quarter. Lunia Capital LP now owns 18,367,683 shares of the business services provider’s stock valued at $18,368,000 after acquiring an additional 18,239,702 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in shares of Automatic Data Processing by 213.1% in the third quarter. JPMorgan Chase & Co. now owns 8,639,847 shares of the business services provider’s stock valued at $1,301,682,000 after acquiring an additional 5,880,242 shares during the period. 81.20% of the stock is owned by hedge funds and other institutional investors.

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.

Further Reading: Oversold

Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

Receive News & Ratings for Automatic Data Processing Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Automatic Data Processing and related companies with MarketBeat.com's FREE daily email newsletter.