Automatic Data Processing (NASDAQ:ADP) Issues Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Automatic Data Processing (NASDAQ:ADP) announced its quarterly earnings results on Wednesday. The business services provider reported $2.35 EPS for the quarter, topping the consensus estimate of $2.30 by $0.05, Zacks reports. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. Automatic Data Processing updated its FY 2025 guidance to 9.820-10.010 EPS.

Automatic Data Processing Stock Up 0.8 %

Shares of Automatic Data Processing stock opened at $300.57 on Thursday. The business’s 50 day simple moving average is $297.19 and its 200 day simple moving average is $283.65. Automatic Data Processing has a 52-week low of $231.27 and a 52-week high of $311.67. The firm has a market cap of $122.47 billion, a PE ratio of 32.08, a P/E/G ratio of 3.45 and a beta of 0.79. 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 Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Friday, March 14th will be given a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a yield of 2.05%. The ex-dividend date is Friday, March 14th. Automatic Data Processing’s dividend payout ratio is presently 65.74%.

Insider Activity at Automatic Data Processing

In other news, VP Sreenivasa Kutam sold 38,975 shares of the stock in a transaction that occurred on Wednesday, November 6th. The stock was sold at an average price of $300.00, for a total value of $11,692,500.00. Following the completion of 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 position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP David Foskett sold 1,067 shares of the stock in a transaction that occurred on Monday, January 13th. The shares were sold at an average price of $286.15, for a total value of $305,322.05. Following the completion of the sale, the vice president now directly owns 6,140 shares of the company’s stock, valued at approximately $1,756,961. The trade was a 14.81 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 42,129 shares of company stock valued at $12,604,872. 0.21% of the stock is owned by insiders.

Analyst Ratings Changes

ADP has been the topic of a number of recent analyst reports. StockNews.com downgraded Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Monday. TD Cowen boosted their target price on shares of Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a research report on Friday, November 1st. UBS Group increased their price objective 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. Mizuho boosted their price target on shares of Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a report on Monday, November 4th. Finally, Barclays increased their target price on Automatic Data Processing from $310.00 to $325.00 and gave the stock an “overweight” rating in a report on Monday, November 4th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the stock. According to MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and an average price target of $289.91.

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.