Automatic Data Processing (NASDAQ:ADP) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Friday, Zacks.com reports. They presently have a $112.00 price objective on the business services provider’s stock. Zacks Investment Research‘s price target indicates a potential downside of 15.73% from the company’s current price.
According to Zacks, “ADP faces significant competition in each of its product lines. Failure to remain technologically updated might reduce the demand for its solutions and services. The company is seeing increase in expenses as it continues to acquire companies and invest in transformation efforts. Partly due to these negatives, shares of ADP have declined over the past year. On the flip side, ADP continues to enjoy a dominant position in the human capital management market through strategic acquisitions like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company. It has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. A solid balance sheet enables the company to continue with its shareholder-friendly activities alongside strategic acquisitions and investments on product development.”
A number of other research analysts have also recently weighed in on ADP. Citigroup lowered their price objective on Automatic Data Processing from $148.00 to $144.00 and set a “neutral” rating on the stock in a research report on Thursday. Bank of America downgraded shares of Automatic Data Processing from a “neutral” rating to an “underperform” rating and set a $132.00 price target on the stock. in a report on Monday, May 18th. Goldman Sachs Group started coverage on shares of Automatic Data Processing in a research note on Tuesday, July 14th. They issued a “sell” rating and a $146.00 price objective for the company. JPMorgan Chase & Co. lowered their target price on shares of Automatic Data Processing from $189.00 to $159.00 and set a “neutral” rating on the stock in a research note on Wednesday, April 15th. Finally, BMO Capital Markets dropped their target price on shares of Automatic Data Processing from $179.00 to $154.00 and set a “market perform” rating for the company in a report on Thursday, April 30th. Five research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the stock. Automatic Data Processing currently has a consensus rating of “Hold” and an average price target of $157.46.
Shares of ADP stock opened at $132.91 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.03 and a debt-to-equity ratio of 0.23. Automatic Data Processing has a 12 month low of $103.11 and a 12 month high of $182.32. The stock has a market cap of $57.12 billion, a P/E ratio of 22.45, a P/E/G ratio of 2.22 and a beta of 0.82. The company has a 50 day simple moving average of $147.29 and a two-hundred day simple moving average of $150.95.
Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, July 29th. The business services provider reported $1.14 EPS for the quarter, topping the consensus estimate of $0.96 by $0.18. Automatic Data Processing had a return on equity of 46.66% and a net margin of 16.91%. The firm had revenue of $3.40 billion during the quarter, compared to analyst estimates of $3.32 billion. During the same period in the prior year, the business posted $1.14 EPS. Automatic Data Processing’s revenue was down 2.8% on a year-over-year basis. As a group, equities analysts forecast that Automatic Data Processing will post 5.04 earnings per share for the current year.
In related news, VP Brian L. Michaud sold 250 shares of the business’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $145.00, for a total value of $36,250.00. Following the sale, the vice president now owns 5,162 shares in the company, valued at $748,490. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.31% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Creative Financial Designs Inc. ADV bought a new stake in Automatic Data Processing during the first quarter worth approximately $27,000. Paragon Capital Management LLC purchased a new position in shares of Automatic Data Processing in the 1st quarter worth approximately $27,000. Horan Securities Inc. bought a new position in shares of Automatic Data Processing during the 1st quarter valued at approximately $33,000. Front Row Advisors LLC raised its holdings in Automatic Data Processing by 118.9% during the 1st quarter. Front Row Advisors LLC now owns 267 shares of the business services provider’s stock valued at $39,000 after buying an additional 145 shares during the period. Finally, Financial Management Professionals Inc. lifted its position in Automatic Data Processing by 28,100.0% in the second quarter. Financial Management Professionals Inc. now owns 282 shares of the business services provider’s stock worth $42,000 after buying an additional 281 shares during the last quarter. Institutional investors own 79.82% of the company’s stock.
Automatic Data Processing Company Profile
Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.
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