Automatic Data Processing (NASDAQ:ADP) Issues Quarterly Earnings Results

Automatic Data Processing (NASDAQ:ADP) announced its quarterly earnings results on Wednesday. The business services provider reported $2.35 earnings per share for the quarter, beating the consensus estimate of $2.30 by $0.05, Zacks reports. Automatic Data Processing had a return on equity of 81.85% and a net margin of 19.76%. Automatic Data Processing updated its FY 2025 guidance to 9.820-10.010 EPS.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $303.26 on Friday. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.01 and a current ratio of 1.01. Automatic Data Processing has a 52-week low of $231.27 and a 52-week high of $311.67. The company has a fifty day moving average of $297.23 and a 200-day moving average of $283.77. The stock has a market capitalization of $123.57 billion, a price-to-earnings ratio of 31.62, a price-to-earnings-growth ratio of 3.50 and a beta of 0.79.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be paid a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a dividend yield of 2.03%. The ex-dividend date of this dividend is Friday, March 14th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 64.23%.

Analyst Upgrades and Downgrades

ADP has been the topic of a number of analyst reports. Jefferies Financial Group upped their target price on shares of Automatic Data Processing from $290.00 to $305.00 and gave the stock a “hold” rating in a report on Thursday. StockNews.com cut shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Monday. TD Cowen lifted their price objective on Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a research note on Friday, November 1st. Royal Bank of Canada restated a “sector perform” rating and issued a $315.00 target price on shares of Automatic Data Processing in a research note on Thursday. Finally, Mizuho lifted their price target on Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a research report on Monday, November 4th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $291.27.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Foskett sold 1,067 shares of the business’s stock in a transaction dated Monday, January 13th. The shares were sold at an average price of $286.15, for a total value of $305,322.05. Following the transaction, the vice president now owns 6,140 shares in the company, valued at approximately $1,756,961. The trade was a 14.81 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Sreenivasa Kutam sold 38,975 shares of the stock in a transaction dated Wednesday, November 6th. The stock was sold at an average price of $300.00, for a total transaction of $11,692,500.00. Following the sale, the vice president now owns 32,604 shares of the company’s stock, valued at approximately $9,781,200. This represents a 54.45 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 42,129 shares of company stock worth $12,604,872 in the last 90 days. 0.21% of the stock is owned by company insiders.

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.