Cowen Lowers Automatic Data Processing (NASDAQ:ADP) to Market Perform

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

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

Shares of ADP opened at $130.80 on Monday. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing has a 1 year low of $103.11 and a 1 year high of $182.32. The company has a 50 day simple moving average of $137.62 and a two-hundred day simple moving average of $140.87. The firm has a market cap of $56.24 billion, a P/E ratio of 22.95, a price-to-earnings-growth ratio of 2.21 and a beta of 0.75.

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

The business 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 $0.91 dividend. The ex-dividend date is Thursday, September 10th. This represents a $3.64 dividend on an annualized basis and a yield of 2.78%. Automatic Data Processing’s dividend payout ratio is presently 61.49%.

In related news, VP Brian L. Michaud sold 250 shares of the firm’s stock in a transaction on Friday, July 10th. The stock was 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 directly owns 5,162 shares in the company, valued at $748,490. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Carlos A. Rodriguez sold 52,229 shares of the firm’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 owns 116,284 shares of the company’s stock, valued at $15,913,465.40. The disclosure for this sale can be found here. 0.31% of the stock is owned by company insiders.

Large investors have recently added to or reduced their stakes in the company. Providence Capital Advisors LLC lifted its position in shares of Automatic Data Processing by 50.0% during the first quarter. Providence Capital Advisors LLC now owns 300 shares of the business services provider’s stock worth $41,000 after purchasing an additional 100 shares during the last quarter. Financial Management Professionals Inc. lifted its position in shares of Automatic Data Processing by 28,100.0% during the second quarter. Financial Management Professionals Inc. now owns 282 shares of the business services provider’s stock worth $42,000 after purchasing an additional 281 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in shares of Automatic Data Processing by 15,650.0% during the first quarter. Tower Research Capital LLC TRC now owns 315 shares of the business services provider’s stock worth $43,000 after purchasing an additional 313 shares during the last quarter. JJJ Advisors Inc. bought a new stake in shares of Automatic Data Processing during the second quarter worth $44,000. Finally, Tarbox Family Office Inc. lifted its position in shares of Automatic Data Processing by 86.3% during the second quarter. Tarbox Family Office Inc. now owns 300 shares of the business services provider’s stock worth $45,000 after purchasing an additional 139 shares during the last quarter. Institutional investors and hedge funds own 78.77% 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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Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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