Automatic Data Processing, Inc. (NASDAQ:ADP) Increases Dividend to $1.54 Per Share

Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend on Wednesday, November 6th, RTT News reports. Investors of record on Friday, December 13th will be paid a dividend of 1.54 per share by the business services provider on Wednesday, January 1st. This represents a $6.16 annualized dividend and a dividend yield of 2.05%. This is an increase from Automatic Data Processing’s previous quarterly dividend of $1.40.

Automatic Data Processing has increased its dividend payment by an average of 12.1% annually over the last three years and has increased its dividend annually for the last 48 consecutive years. Automatic Data Processing has a dividend payout ratio of 55.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Automatic Data Processing to earn $10.80 per share next year, which means the company should continue to be able to cover its $5.60 annual dividend with an expected future payout ratio of 51.9%.

Automatic Data Processing Stock Performance

ADP traded up $9.58 during midday trading on Wednesday, hitting $300.76. 50,033 shares of the company were exchanged, compared to its average volume of 1,624,451. The firm has a market capitalization of $122.66 billion, a price-to-earnings ratio of 31.08, a price-to-earnings-growth ratio of 3.35 and a beta of 0.79. The company’s 50 day simple moving average is $282.27 and its 200 day simple moving average is $260.80. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.56. Automatic Data Processing has a 1-year low of $219.21 and a 1-year high of $302.08.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 30th. The business services provider reported $2.33 EPS for the quarter, topping analysts’ consensus estimates of $2.21 by $0.12. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. The business had revenue of $4.83 billion for the quarter, compared to analysts’ expectations of $4.77 billion. During the same quarter last year, the company earned $2.08 EPS. The business’s revenue was up 7.1% on a year-over-year basis. As a group, sell-side analysts predict that Automatic Data Processing will post 9.94 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Mizuho raised their price target on shares of Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a research note on Monday. UBS Group raised their target price on Automatic Data Processing from $270.00 to $295.00 and gave the company a “neutral” rating in a research report on Tuesday, October 22nd. Jefferies Financial Group boosted their price target on Automatic Data Processing from $260.00 to $290.00 and gave the stock a “hold” rating in a research report on Tuesday, October 22nd. TD Cowen raised their price objective on Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a report on Friday, November 1st. Finally, Citigroup upped their target price on shares of Automatic Data Processing from $260.00 to $295.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and two have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $289.91.

Insiders Place Their Bets

In related news, Director Carlos A. Rodriguez sold 9,203 shares of Automatic Data Processing stock in a transaction on Friday, September 6th. The stock was sold at an average price of $269.45, for a total value of $2,479,748.35. Following the completion of the transaction, the director now directly owns 36,741 shares in the company, valued at approximately $9,899,862.45. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other news, VP Don Mcguire sold 3,179 shares of the firm’s stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total value of $872,254.02. Following the sale, the vice president now directly owns 41,696 shares in the company, valued at approximately $11,440,548.48. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Carlos A. Rodriguez sold 9,203 shares of Automatic Data Processing stock in a transaction on Friday, September 6th. The stock was sold at an average price of $269.45, for a total transaction of $2,479,748.35. Following the sale, the director now directly owns 36,741 shares of the company’s stock, valued at approximately $9,899,862.45. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 58,817 shares of company stock worth $15,999,208 in the last ninety days. 0.21% of the stock is owned by corporate insiders.

About Automatic Data Processing

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.