Automatic Data Processing (NASDAQ:ADP) Stock Rating Lowered by Cowen

Cowen lowered shares of Automatic Data Processing (NASDAQ:ADP) from an outperform rating to a market perform rating in a research note issued to investors on Monday, 24/7 WallStreet reports. The firm currently has $143.00 target price on the business services provider’s stock, down from their previous target price of $150.00.

A number of other research analysts also recently issued reports on the company. Stifel Nicolaus decreased their price target on Automatic Data Processing from $155.00 to $142.00 and set a hold rating for the company in a report on Thursday, July 30th. BidaskClub raised Automatic Data Processing from a strong sell rating to a sell rating in a research note on Saturday, September 5th. JPMorgan Chase & Co. upped their target price on Automatic Data Processing from $138.00 to $151.00 and gave the stock a neutral rating in a research note on Monday, August 17th. Wolfe Research downgraded Automatic Data Processing from a market perform rating to an underperform rating in a research note on Thursday, July 30th. Finally, Citigroup reduced their target price on Automatic Data Processing from $148.00 to $144.00 and set a neutral rating for the company in a research note on Thursday, July 30th. Five analysts have rated the stock with a sell rating, eleven have given a hold rating and two have issued a buy rating to the company. Automatic Data Processing has an average rating of Hold and an average price target of $152.83.

Shares of NASDAQ:ADP opened at $130.80 on Monday. Automatic Data Processing has a 12-month low of $103.11 and a 12-month high of $182.32. The company has a market capitalization of $56.24 billion, a PE ratio of 22.95, a PEG ratio of 2.21 and a beta of 0.75. The business has a 50 day moving average of $137.62 and a two-hundred day moving average of $140.87. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.17.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, July 29th. The business services provider reported $1.14 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.96 by $0.18. Automatic Data Processing had a return on equity of 46.66% and a net margin of 16.91%. The company had revenue of $3.40 billion during the quarter, compared to the consensus estimate of $3.32 billion. During the same period in the previous year, the company posted $1.14 earnings per share. Automatic Data Processing’s revenue for the quarter was down 2.8% on a year-over-year basis. Equities research analysts predict that Automatic Data Processing will post 5.01 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 2.78%. The ex-dividend date is Thursday, September 10th. Automatic Data Processing’s payout ratio is 61.49%.

In other Automatic Data Processing news, CEO Carlos A. Rodriguez sold 52,229 shares of the company’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $136.85, for a total value of $7,147,538.65. Following the completion of the sale, the chief executive officer now directly owns 116,284 shares in the company, valued at approximately $15,913,465.40. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Brian L. Michaud sold 250 shares of the company’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $145.00, for a total value of $36,250.00. Following the completion of the sale, the vice president now owns 5,162 shares of the company’s stock, valued at $748,490. The disclosure for this sale can be found here. 0.31% of the stock is currently owned by insiders.

A number of large investors have recently modified their holdings of ADP. Nordea Investment Management AB grew its holdings in Automatic Data Processing by 115.7% in the 2nd quarter. Nordea Investment Management AB now owns 3,784,376 shares of the business services provider’s stock valued at $556,758,000 after buying an additional 2,030,189 shares in the last quarter. Alliancebernstein L.P. grew its holdings in Automatic Data Processing by 26.8% in the 1st quarter. Alliancebernstein L.P. now owns 9,561,003 shares of the business services provider’s stock valued at $1,306,798,000 after buying an additional 2,021,774 shares in the last quarter. BlackRock Inc. grew its holdings in Automatic Data Processing by 2.9% in the 2nd quarter. BlackRock Inc. now owns 32,146,335 shares of the business services provider’s stock valued at $4,786,267,000 after buying an additional 912,395 shares in the last quarter. Public Investment Fund grew its holdings in Automatic Data Processing by 158.2% in the 2nd quarter. Public Investment Fund now owns 1,481,837 shares of the business services provider’s stock valued at $220,631,000 after buying an additional 907,837 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its holdings in Automatic Data Processing by 8.6% in the 2nd quarter. Bank of New York Mellon Corp now owns 10,811,602 shares of the business services provider’s stock valued at $1,609,739,000 after buying an additional 855,564 shares in the last quarter. Institutional investors own 78.77% of the company’s stock.

Automatic Data Processing Company Profile

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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