Automatic Data Processing (NASDAQ:ADP) Earns Neutral Rating from Analysts at Citigroup

Citigroup assumed coverage on shares of Automatic Data Processing (NASDAQ:ADP) in a report issued on Thursday, MarketBeat reports. The brokerage issued a neutral rating and a $303.00 price target on the business services provider’s stock.

A number of other equities research analysts have also recently commented on ADP. Stifel Nicolaus lifted their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a “hold” rating in a report on Thursday, July 31st. Weiss Ratings restated a “buy (b)” rating on shares of Automatic Data Processing in a research note on Wednesday, October 8th. BMO Capital Markets upgraded Automatic Data Processing to a “hold” rating and set a $340.00 target price on the stock in a research note on Thursday, July 10th. Morgan Stanley boosted their target price on Automatic Data Processing from $310.00 to $311.00 and gave the company an “equal weight” rating in a research note on Thursday, July 31st. Finally, UBS Group lowered their price objective on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a research note on Wednesday, September 17th. Three investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $313.17.

Automatic Data Processing Stock Down 0.2%

ADP stock opened at $280.94 on Thursday. The stock’s fifty day simple moving average is $293.36 and its two-hundred day simple moving average is $302.22. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing has a 1-year low of $272.62 and a 1-year high of $329.93. The stock has a market cap of $113.81 billion, a P/E ratio of 28.15, a P/E/G ratio of 2.57 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, topping analysts’ consensus estimates of $2.23 by $0.03. The company had revenue of $5.13 billion for the quarter, compared to analysts’ expectations of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The business’s revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period in the previous year, the business posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Analysts expect that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Friday, September 12th were issued a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, September 12th. Automatic Data Processing’s dividend payout ratio is 61.72%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Don Mcguire sold 13,599 shares of the company’s stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $4,033,055.43. Following the transaction, the vice president directly owned 17,684 shares in the company, valued at $5,244,543.88. This represents a 43.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Michael A. Bonarti sold 8,728 shares of the company’s stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total value of $2,604,697.04. Following the completion of the transaction, the vice president owned 80,531 shares in the company, valued at $24,032,866.33. This represents a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 52,516 shares of company stock worth $15,632,410. 0.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Automatic Data Processing

A number of institutional investors have recently made changes to their positions in the stock. MGO One Seven LLC increased its holdings in shares of Automatic Data Processing by 18.8% in the 3rd quarter. MGO One Seven LLC now owns 16,135 shares of the business services provider’s stock worth $4,736,000 after buying an additional 2,557 shares during the last quarter. Citizens Financial Group Inc. RI increased its stake in Automatic Data Processing by 5.6% in the third quarter. Citizens Financial Group Inc. RI now owns 24,254 shares of the business services provider’s stock valued at $7,133,000 after acquiring an additional 1,281 shares during the last quarter. Tema Etfs LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter valued at about $1,833,000. Swmg LLC increased its position in shares of Automatic Data Processing by 34.9% during the 3rd quarter. Swmg LLC now owns 3,390 shares of the business services provider’s stock valued at $954,000 after purchasing an additional 877 shares during the last quarter. Finally, Cedar Mountain Advisors LLC increased its position in shares of Automatic Data Processing by 31.0% during the 3rd quarter. Cedar Mountain Advisors LLC now owns 17,023 shares of the business services provider’s stock valued at $4,996,000 after purchasing an additional 4,028 shares during the last quarter. 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.