Automatic Data Processing (NASDAQ:ADP) Cut to Underperform at Wolfe Research

Wolfe Research cut shares of Automatic Data Processing (NASDAQ:ADP) from a market perform rating to an underperform rating in a research note issued to investors on Thursday morning, The Fly reports.

A number of other equities analysts also recently issued reports on ADP. JPMorgan Chase & Co. lowered their price objective on Automatic Data Processing from $189.00 to $159.00 and set a neutral rating for the company in a research report on Wednesday, April 15th. Goldman Sachs Group initiated coverage on shares of Automatic Data Processing in a report on Tuesday, July 14th. They set a sell rating and a $146.00 price target for the company. UBS Group raised shares of Automatic Data Processing from a sell rating to a neutral rating in a research note on Wednesday, April 1st. Stifel Nicolaus increased their price objective on shares of Automatic Data Processing from $150.00 to $155.00 and gave the stock a hold rating in a research report on Thursday, April 30th. Finally, Citigroup dropped their target price on shares of Automatic Data Processing from $148.00 to $144.00 and set a neutral rating on the stock in a report on Thursday. Five equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and an average price target of $157.46.

NASDAQ:ADP opened at $132.91 on Thursday. Automatic Data Processing has a one year low of $103.11 and a one year high of $182.32. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.05 and a quick ratio of 1.03. The company has a market cap of $57.12 billion, a PE ratio of 22.45, a P/E/G ratio of 2.22 and a beta of 0.82. The firm’s 50 day simple moving average is $147.29 and its 200 day simple moving average is $150.95.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $1.14 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.18. The company had revenue of $3.40 billion for the quarter, compared to analyst estimates of $3.32 billion. Automatic Data Processing had a net margin of 16.91% and a return on equity of 46.66%. Automatic Data Processing’s revenue was down 2.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.14 earnings per share. Equities research analysts expect that Automatic Data Processing will post 5.04 EPS for the current year.

In other Automatic Data Processing news, VP Brian L. Michaud sold 250 shares of the firm’s stock in a transaction that occurred 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 owns 5,162 shares of the company’s stock, valued at $748,490. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.31% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Morgan Stanley increased its position in shares of Automatic Data Processing by 6.5% during the first quarter. Morgan Stanley now owns 11,440,067 shares of the business services provider’s stock worth $1,563,628,000 after acquiring an additional 702,522 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Automatic Data Processing by 0.3% in the first quarter. Bank of New York Mellon Corp now owns 9,956,038 shares of the business services provider’s stock valued at $1,360,790,000 after purchasing an additional 27,655 shares in the last quarter. Alliancebernstein L.P. boosted its position in shares of Automatic Data Processing by 26.8% during the first 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 during the last quarter. Geode Capital Management LLC raised its position in Automatic Data Processing by 0.4% in the 1st quarter. Geode Capital Management LLC now owns 7,571,328 shares of the business services provider’s stock valued at $1,033,491,000 after buying an additional 29,608 shares during the last quarter. Finally, Polen Capital Management LLC lifted its stake in Automatic Data Processing by 5.5% during the 1st quarter. Polen Capital Management LLC now owns 5,327,251 shares of the business services provider’s stock valued at $728,129,000 after acquiring an additional 275,548 shares in the last quarter. Hedge funds and other institutional investors own 79.82% 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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