Automatic Data Processing (NASDAQ:ADP) Receives Average Rating of “Hold” from Brokerages

Shares of Automatic Data Processing (NASDAQ:ADP) have received an average recommendation of “Hold” from the sixteen analysts that are presently covering the stock, MarketBeat reports. Ten equities research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $186.20.

A number of equities analysts have recently commented on ADP shares. Evercore ISI raised shares of Automatic Data Processing from an “in-line” rating to an “outperform” rating and set a $212.00 price objective for the company in a report on Wednesday, January 22nd. Citigroup raised their price objective on shares of Automatic Data Processing from $170.00 to $185.00 and gave the stock a “neutral” rating in a report on Tuesday, January 14th. ValuEngine raised shares of Automatic Data Processing from a “sell” rating to a “hold” rating in a report on Tuesday, December 3rd. Credit Suisse Group reaffirmed a “buy” rating and set a $190.00 price objective on shares of Automatic Data Processing in a report on Sunday, February 2nd. Finally, Morgan Stanley lifted their price target on shares of Automatic Data Processing from $174.00 to $180.00 and gave the company an “equal weight” rating in a report on Thursday, January 23rd.

Shares of NASDAQ:ADP traded up $1.14 during midday trading on Friday, reaching $181.25. 1,566,513 shares of the company’s stock were exchanged. The company’s 50 day simple moving average is $174.09 and its two-hundred day simple moving average is $167.66. Automatic Data Processing has a 12 month low of $148.15 and a 12 month high of $181.28.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 29th. The business services provider reported $1.52 EPS for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The business had revenue of $3.67 billion for the quarter, compared to the consensus estimate of $3.69 billion. Automatic Data Processing’s revenue was up 5.1% on a year-over-year basis. During the same period in the previous year, the business posted $1.34 earnings per share. Sell-side analysts forecast that Automatic Data Processing will post 6.17 EPS for the current year.

Automatic Data Processing declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, November 12th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the business services provider to purchase up to 6.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its stock is undervalued.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 2.01%. The ex-dividend date of this dividend is Thursday, March 12th. Automatic Data Processing’s dividend payout ratio is currently 66.79%.

In other Automatic Data Processing news, VP Don Mcguire sold 326 shares of the business’s stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $172.07, for a total value of $56,094.82. Following the completion of the transaction, the vice president now directly owns 6,916 shares of the company’s stock, valued at $1,190,036.12. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Donald Weinstein sold 2,000 shares of the business’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $170.08, for a total transaction of $340,160.00. Following the completion of the transaction, the vice president now directly owns 25,710 shares of the company’s stock, valued at $4,372,756.80. The disclosure for this sale can be found here. Insiders have sold a total of 14,528 shares of company stock valued at $2,556,051 over the last three months. 0.31% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Klingenstein Fields & Co. LLC grew its position in shares of Automatic Data Processing by 1.4% during the 4th quarter. Klingenstein Fields & Co. LLC now owns 4,257 shares of the business services provider’s stock worth $726,000 after buying an additional 57 shares during the period. Iberiabank Corp grew its position in shares of Automatic Data Processing by 2.4% during the 4th quarter. Iberiabank Corp now owns 2,546 shares of the business services provider’s stock worth $434,000 after buying an additional 59 shares during the period. Corundum Group Inc. grew its position in shares of Automatic Data Processing by 3.9% during the 4th quarter. Corundum Group Inc. now owns 1,584 shares of the business services provider’s stock worth $270,000 after buying an additional 60 shares during the period. Moors & Cabot Inc. grew its position in shares of Automatic Data Processing by 0.9% during the 3rd quarter. Moors & Cabot Inc. now owns 7,192 shares of the business services provider’s stock worth $1,161,000 after buying an additional 63 shares during the period. Finally, Shine Investment Advisory Services Inc. grew its holdings in Automatic Data Processing by 9.4% during the fourth quarter. Shine Investment Advisory Services Inc. now owns 734 shares of the business services provider’s stock valued at $125,000 after purchasing an additional 63 shares during the period. 80.12% of the stock is owned by 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.

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Analyst Recommendations for Automatic Data Processing (NASDAQ:ADP)

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