Automatic Data Processing (ADP) Raised to “Buy” at Goldman Sachs Group

Goldman Sachs Group upgraded shares of Automatic Data Processing (NASDAQ:ADP) from a neutral rating to a buy rating in a report released on Monday morning, MarketBeat.com reports. They currently have $135.00 price objective on the business services provider’s stock, up from their prior price objective of $116.02.

Several other research analysts have also recently issued reports on the company. BidaskClub raised Automatic Data Processing from a hold rating to a buy rating in a report on Thursday, September 28th. Barclays reaffirmed an equal weight rating and issued a $105.00 price target on shares of Automatic Data Processing in a report on Tuesday, August 15th. Zacks Investment Research raised Automatic Data Processing from a sell rating to a hold rating in a report on Monday, October 2nd. Evercore ISI reaffirmed an in-line rating and issued a $115.00 price target on shares of Automatic Data Processing in a report on Sunday, August 20th. Finally, Citigroup reaffirmed a neutral rating and issued a $110.00 price target (up previously from $98.00) on shares of Automatic Data Processing in a report on Thursday, August 17th. Eleven research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Automatic Data Processing has a consensus rating of Hold and an average price target of $114.17.

Shares of Automatic Data Processing (ADP) opened at $116.46 on Monday. Automatic Data Processing has a twelve month low of $94.11 and a twelve month high of $121.77. The company has a market capitalization of $51,897.16, a P/E ratio of 31.29, a P/E/G ratio of 2.90 and a beta of 0.85. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.51.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Thursday, November 2nd. The business services provider reported $0.91 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.85 by $0.06. Automatic Data Processing had a return on equity of 42.34% and a net margin of 14.08%. The firm had revenue of $3.08 billion for the quarter, compared to analysts’ expectations of $3.06 billion. During the same quarter in the previous year, the company earned $0.86 earnings per share. The firm’s quarterly revenue was up 5.6% compared to the same quarter last year. analysts expect that Automatic Data Processing will post 3.91 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Monday, January 1st. Stockholders of record on Friday, December 8th will be issued a dividend of $0.63 per share. This is a boost from Automatic Data Processing’s previous quarterly dividend of $0.57. This represents a $2.52 annualized dividend and a dividend yield of 2.16%. The ex-dividend date is Thursday, December 7th. Automatic Data Processing’s payout ratio is currently 64.12%.

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. boosted its holdings in Automatic Data Processing by 1,971.2% in the first quarter. BlackRock Inc. now owns 29,631,769 shares of the business services provider’s stock worth $3,033,995,000 after purchasing an additional 28,201,085 shares in the last quarter. Pershing Square Capital Management L.P. boosted its holdings in Automatic Data Processing by 402.5% in the third quarter. Pershing Square Capital Management L.P. now owns 8,798,442 shares of the business services provider’s stock worth $961,846,000 after purchasing an additional 7,047,575 shares in the last quarter. Janus Henderson Group PLC boosted its holdings in Automatic Data Processing by 5,962.5% in the second quarter. Janus Henderson Group PLC now owns 4,013,865 shares of the business services provider’s stock worth $411,260,000 after purchasing an additional 3,947,657 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Automatic Data Processing by 4.4% in the first quarter. Vanguard Group Inc. now owns 34,188,021 shares of the business services provider’s stock worth $3,500,512,000 after purchasing an additional 1,430,863 shares in the last quarter. Finally, Canada Pension Plan Investment Board boosted its holdings in Automatic Data Processing by 42,776.7% in the third quarter. Canada Pension Plan Investment Board now owns 1,376,771 shares of the business services provider’s stock worth $150,509,000 after purchasing an additional 1,373,560 shares in the last quarter. Institutional investors and hedge funds own 78.78% of the company’s stock.

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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 (NASDAQ:ADP)

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