Automatic Data Processing (ADP) Given Consensus Recommendation of “Buy” by Analysts

Automatic Data Processing (NASDAQ:ADP) has been given a consensus recommendation of “Buy” by the sixteen ratings firms that are covering the stock, Marketbeat.com reports. Nine equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $157.42.

A number of analysts have recently issued reports on the stock. Zacks Investment Research cut shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Wednesday. BidaskClub raised shares of Automatic Data Processing from a “buy” rating to a “strong-buy” rating in a research note on Friday, May 10th. Citigroup increased their price objective on shares of Automatic Data Processing from $147.00 to $162.00 and gave the stock a “neutral” rating in a research note on Thursday, May 2nd. Barclays increased their price objective on shares of Automatic Data Processing from $168.00 to $180.00 and gave the stock an “overweight” rating in a research note on Monday, May 6th. Finally, Sanford C. Bernstein cut shares of Automatic Data Processing from an “outperform” rating to a “market perform” rating in a research note on Tuesday, April 30th.

In related news, insider Jan Siegmund sold 27,272 shares of the company’s stock in a transaction on Tuesday, April 23rd. The shares were sold at an average price of $165.00, for a total transaction of $4,499,880.00. Following the completion of the transaction, the insider now owns 77,595 shares in the company, valued at $12,803,175. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Carlos A. Rodriguez sold 36,364 shares of the company’s stock in a transaction on Thursday, February 14th. The stock was sold at an average price of $149.05, for a total transaction of $5,420,054.20. Following the transaction, the chief executive officer now owns 148,842 shares of the company’s stock, valued at approximately $22,184,900.10. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 66,820 shares of company stock valued at $10,430,723. 0.33% of the stock is owned by company insiders.

Large investors have recently modified their holdings of the stock. Cerebellum GP LLC lifted its position in Automatic Data Processing by 1,376.9% during the fourth quarter. Cerebellum GP LLC now owns 192 shares of the business services provider’s stock valued at $25,000 after purchasing an additional 179 shares during the last quarter. Tributary Capital Management LLC bought a new position in Automatic Data Processing during the fourth quarter valued at $26,000. AlphaMark Advisors LLC lifted its position in Automatic Data Processing by 319.1% during the fourth quarter. AlphaMark Advisors LLC now owns 197 shares of the business services provider’s stock valued at $26,000 after purchasing an additional 150 shares during the last quarter. Lake Point Wealth Management bought a new position in Automatic Data Processing during the fourth quarter valued at $26,000. Finally, Horan Securities Inc. bought a new position in Automatic Data Processing during the fourth quarter valued at $31,000. Hedge funds and other institutional investors own 81.20% of the company’s stock.

ADP stock traded up $1.21 during midday trading on Friday, reaching $159.72. 42,259 shares of the company’s stock traded hands, compared to its average volume of 1,513,875. Automatic Data Processing has a 52-week low of $121.40 and a 52-week high of $165.50. The stock has a market cap of $68.77 billion, a P/E ratio of 36.67, a P/E/G ratio of 2.23 and a beta of 0.95. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.38.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, May 1st. The business services provider reported $1.77 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.69 by $0.08. The firm had revenue of $3.85 billion during the quarter, compared to analysts’ expectations of $3.91 billion. Automatic Data Processing had a net margin of 13.76% and a return on equity of 50.53%. The company’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.57 earnings per share. As a group, equities analysts forecast that Automatic Data Processing will post 5.43 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Stockholders 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 dividend on an annualized basis and a dividend yield of 1.98%. Automatic Data Processing’s dividend payout ratio (DPR) is presently 72.64%.

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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Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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