Automatic Data Processing (NASDAQ:ADP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The brokerage presently has a $133.00 target price on the business services provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 12.43% from the company’s previous close.
According to Zacks, “ADP is a provider of human capital management solutions and integrated computing solutions to vehicle dealers. We note that the stock has outperformed the industry over the past one year. The company also raised fiscal 2018 guidance for revenues and earnings. We note that ADP holds a dominant position in the payroll processing and human capital management (HCM) market, primarily owing to its robust product portfolio. Moreover, activist investor Bill Ackman recently failed to get a position in the company's board. The overwhelming shareholder support for the existing board reflects strong confidence over management’s strategies, which is expected to drive share price in the near term. Nevertheless, we expect investments in new initiatives will continue to weigh on the company’s bottom-line results. Further, increasing competition is a major headwind.”
Several other equities analysts have also recently issued reports on the stock. Goldman Sachs Group raised shares of Automatic Data Processing from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $116.02 to $135.00 in a research note on Monday, December 11th. Bank of America raised shares of Automatic Data Processing from a “neutral” rating to a “buy” rating in a research note on Tuesday, December 5th. BidaskClub raised shares of Automatic Data Processing from a “sell” rating to a “hold” rating in a research note on Saturday, December 2nd. Morgan Stanley reissued an “equal weight” rating on shares of Automatic Data Processing in a research note on Wednesday, November 15th. Finally, Royal Bank of Canada dropped their price objective on shares of Automatic Data Processing from $100.00 to $95.00 and set a “sector perform” rating on the stock in a research note on Monday, November 6th. Eleven analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $114.64.
Automatic Data Processing (NASDAQ ADP) opened at $118.30 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.10 and a quick ratio of 1.10. The stock has a market cap of $52,430.00, a price-to-earnings ratio of 30.03, a price-to-earnings-growth ratio of 2.93 and a beta of 0.85. Automatic Data Processing has a 12 month low of $94.11 and a 12 month high of $121.77.
Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Thursday, November 2nd. The business services provider reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.06. The company had revenue of $3.08 billion for the quarter, compared to analysts’ expectations of $3.06 billion. Automatic Data Processing had a net margin of 14.08% and a return on equity of 42.34%. Automatic Data Processing’s revenue was up 5.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.86 EPS. equities research analysts anticipate that Automatic Data Processing will post 3.91 earnings per share for the current fiscal year.
In related news, Director John P. Jones III sold 5,688 shares of the stock in a transaction dated Tuesday, January 2nd. The shares were sold at an average price of $116.03, for a total value of $659,978.64. Following the sale, the director now directly owns 53,956 shares of the company’s stock, valued at approximately $6,260,514.68. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Carlos A. Rodriguez sold 95,756 shares of the stock in a transaction dated Thursday, January 4th. The shares were sold at an average price of $118.09, for a total transaction of $11,307,826.04. Following the completion of the sale, the chief executive officer now directly owns 124,722 shares in the company, valued at $14,728,420.98. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 107,619 shares of company stock worth $12,684,290. Corporate insiders own 0.25% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Cedar Capital LLC acquired a new stake in Automatic Data Processing in the 2nd quarter valued at about $254,000. Intl Fcstone Inc. acquired a new stake in Automatic Data Processing in the 2nd quarter valued at about $1,699,000. AHL Partners LLP grew its stake in Automatic Data Processing by 37.3% in the 2nd quarter. AHL Partners LLP now owns 109,735 shares of the business services provider’s stock valued at $11,243,000 after acquiring an additional 29,836 shares during the last quarter. AMP Capital Investors Ltd grew its stake in Automatic Data Processing by 20.0% in the 3rd quarter. AMP Capital Investors Ltd now owns 307,676 shares of the business services provider’s stock valued at $33,636,000 after acquiring an additional 51,252 shares during the last quarter. Finally, Heritage Investors Management Corp grew its stake in Automatic Data Processing by 2.3% in the 2nd quarter. Heritage Investors Management Corp now owns 123,641 shares of the business services provider’s stock valued at $12,668,000 after acquiring an additional 2,795 shares during the last quarter. 78.67% of the stock is currently owned by hedge funds and other institutional investors.
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Automatic Data Processing Company Profile
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.
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