Analysts Set Automatic Data Processing, Inc. (NASDAQ:ADP) Target Price at $255.42

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) have earned an average recommendation of “Hold” from the eleven ratings firms that are covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and two have assigned a buy rating to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $255.42.

A number of research analysts recently commented on ADP shares. Evercore ISI boosted their price target on Automatic Data Processing from $227.00 to $235.00 and gave the company an “underperform” rating in a research note on Tuesday, March 26th. JPMorgan Chase & Co. reduced their price target on shares of Automatic Data Processing from $254.00 to $250.00 and set an “underweight” rating on the stock in a research report on Thursday, May 2nd. TD Cowen decreased their price objective on shares of Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating on the stock in a research note on Thursday, May 2nd. Barclays upped their target price on Automatic Data Processing from $280.00 to $282.00 and gave the stock an “overweight” rating in a research note on Thursday, May 2nd. Finally, StockNews.com upgraded Automatic Data Processing from a “hold” rating to a “buy” rating in a research note on Tuesday, June 18th.

Automatic Data Processing Stock Up 0.6 %

ADP stock opened at $238.69 on Thursday. Automatic Data Processing has a fifty-two week low of $205.53 and a fifty-two week high of $256.84. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.01 and a quick ratio of 1.01. The stock has a market capitalization of $97.69 billion, a price-to-earnings ratio of 26.64, a PEG ratio of 2.61 and a beta of 0.78. The business’s fifty day moving average price is $245.79 and its two-hundred day moving average price is $243.83.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, May 1st. The business services provider reported $2.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.79 by $0.09. The firm had revenue of $5.30 billion for the quarter, compared to analyst estimates of $5.22 billion. Automatic Data Processing had a net margin of 19.56% and a return on equity of 93.09%. The business’s revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.52 EPS. On average, equities analysts anticipate that Automatic Data Processing will post 9.18 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Friday, June 14th will be issued a dividend of $1.40 per share. This represents a $5.60 annualized dividend and a yield of 2.35%. The ex-dividend date of this dividend is Friday, June 14th. Automatic Data Processing’s payout ratio is presently 62.50%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. IMS Capital Management boosted its holdings in shares of Automatic Data Processing by 3.2% during the 1st quarter. IMS Capital Management now owns 9,016 shares of the business services provider’s stock worth $2,252,000 after buying an additional 283 shares in the last quarter. Jackson Wealth Management LLC boosted its stake in Automatic Data Processing by 14.3% during the first quarter. Jackson Wealth Management LLC now owns 16,148 shares of the business services provider’s stock worth $4,033,000 after acquiring an additional 2,019 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in Automatic Data Processing by 9.8% in the first quarter. EverSource Wealth Advisors LLC now owns 1,754 shares of the business services provider’s stock worth $424,000 after purchasing an additional 156 shares during the period. Cambridge Trust Co. increased its stake in Automatic Data Processing by 18.9% in the first quarter. Cambridge Trust Co. now owns 67,642 shares of the business services provider’s stock valued at $16,893,000 after purchasing an additional 10,737 shares in the last quarter. Finally, Pathway Financial Advisers LLC acquired a new position in shares of Automatic Data Processing during the first quarter valued at about $36,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.