Automatic Data Processing (ADP) Upgraded to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Automatic Data Processing (NYSE:ADP) from a hold rating to a buy rating in a report issued on Monday. They currently have $128.00 price objective on the business services provider’s stock.

According to Zacks, “ADP has outperformed the industry on a year-to-date basis. We expect investments in new initiatives will continue to weigh on the company’s near-term bottom-line results. Increasing competition is also a headwind. Moreover, continuing crticism from activist investor Bill Ackman is expected to management under pressure, which will remain an overhang on the stock. Nonetheless, the company’s higher revenue per client and a decent customer retention ratio place it in an advantageous position. Also, ADP holds a dominant position in the payroll processing and human capital management market, primarily due to its robust product portfolio.”

A number of other equities research analysts have also commented on the stock. Bank of America Corporation raised their price objective on shares of Automatic Data Processing from $111.00 to $114.00 and gave the stock a neutral rating in a report on Friday. Stifel Nicolaus restated a hold rating and set a $108.00 price objective on shares of Automatic Data Processing in a report on Wednesday, October 4th. BidaskClub upgraded shares of Automatic Data Processing from a hold rating to a buy rating in a report on Thursday, September 28th. Royal Bank Of Canada restated a hold rating and set a $95.00 price objective on shares of Automatic Data Processing in a report on Friday, September 15th. Finally, BMO Capital Markets restated a market perform rating and set a $105.00 price objective on shares of Automatic Data Processing in a report on Monday, August 21st. One analyst has rated the stock with a sell rating, twelve have issued a hold rating and four have issued a buy rating to the company. The stock has an average rating of Hold and an average target price of $109.25.

Automatic Data Processing (NYSE ADP) opened at 114.58 on Monday. The stock has a market capitalization of $50.92 billion and a PE ratio of 29.76. The stock’s 50 day moving average is $108.98 and its 200 day moving average is $104.75. Automatic Data Processing has a 12-month low of $85.48 and a 12-month high of $121.77.

Automatic Data Processing (NYSE:ADP) last issued its quarterly earnings data on Thursday, July 27th. The business services provider reported $0.65 EPS for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.02). Automatic Data Processing had a return on equity of 26.39% and a net margin of 8.67%. The company had revenue of $3.06 billion for the quarter, compared to analyst estimates of $3.04 billion. During the same quarter in the previous year, the business earned $0.69 earnings per share. The company’s revenue was up 5.7% on a year-over-year basis. Analysts forecast that Automatic Data Processing will post $3.81 EPS for the current year.

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The firm also recently declared a quarterly dividend, which was paid on Sunday, October 1st. Shareholders of record on Friday, September 8th were paid a $0.57 dividend. The ex-dividend date of this dividend was Thursday, September 7th. This represents a $2.28 annualized dividend and a yield of 1.99%.

In other news, CEO Carlos A. Rodriguez sold 36,363 shares of Automatic Data Processing stock in a transaction dated Thursday, July 27th. The shares were sold at an average price of $110.00, for a total value of $3,999,930.00. Following the completion of the transaction, the chief executive officer now owns 146,494 shares of the company’s stock, valued at approximately $16,114,340. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Brock Albinson sold 3,663 shares of Automatic Data Processing stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $106.54, for a total transaction of $390,256.02. Following the completion of the transaction, the vice president now directly owns 6,287 shares of the company’s stock, valued at approximately $669,816.98. The disclosure for this sale can be found here. In the last three months, insiders sold 40,657 shares of company stock valued at $4,457,476.

Several institutional investors and hedge funds have recently made changes to their positions in ADP. Buffington Mohr McNeal grew its position in shares of Automatic Data Processing by 10.2% in the 1st quarter. Buffington Mohr McNeal now owns 4,335 shares of the business services provider’s stock valued at $444,000 after acquiring an additional 400 shares during the period. Pinnacle Financial Partners Inc. grew its position in shares of Automatic Data Processing by 37.1% in the 1st quarter. Pinnacle Financial Partners Inc. now owns 5,599 shares of the business services provider’s stock valued at $573,000 after acquiring an additional 1,514 shares during the period. Athena Capital Advisors LLC bought a new position in shares of Automatic Data Processing in the 1st quarter valued at about $244,000. Maple Capital Management Inc. grew its position in shares of Automatic Data Processing by 3.0% in the 1st quarter. Maple Capital Management Inc. now owns 10,849 shares of the business services provider’s stock valued at $1,111,000 after acquiring an additional 315 shares during the period. Finally, Elkfork Partners LLC grew its position in shares of Automatic Data Processing by 19.5% in the 1st quarter. Elkfork Partners LLC now owns 16,060 shares of the business services provider’s stock valued at $1,645,000 after acquiring an additional 2,618 shares during the period.

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services.

Analyst Recommendations for Automatic Data Processing (NYSE:ADP)

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