Automatic Data Processing (NASDAQ:ADP) Updates FY24 Earnings Guidance

Automatic Data Processing (NASDAQ:ADPGet Free Report) updated its FY24 earnings guidance on Wednesday. The company provided earnings per share guidance of $9.05-9.22 for the period, compared to the consensus earnings per share estimate of $9.12. The company issued revenue guidance of $19.09-19.27 billion, compared to the consensus revenue estimate of $19.14 billion. Automatic Data Processing also updated its FY 2024 guidance to 9.050-9.220 EPS.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Bank of America raised Automatic Data Processing from an underperform rating to a neutral rating and increased their price target for the company from $217.00 to $243.00 in a research report on Wednesday, January 17th. Morgan Stanley cut their target price on Automatic Data Processing from $260.00 to $250.00 and set an equal weight rating for the company in a research note on Thursday, October 26th. Wolfe Research raised Automatic Data Processing from an underperform rating to a peer perform rating in a report on Thursday, January 4th. Mizuho decreased their price objective on Automatic Data Processing from $285.00 to $255.00 and set a buy rating on the stock in a report on Tuesday, October 31st. Finally, UBS Group assumed coverage on Automatic Data Processing in a research note on Tuesday, November 7th. They issued a neutral rating and a $235.00 price target on the stock. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of Hold and an average price target of $253.17.

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Automatic Data Processing Stock Up 2.7 %

Shares of ADP stock opened at $245.00 on Wednesday. The company has a market cap of $100.77 billion, a price-to-earnings ratio of 28.37, a price-to-earnings-growth ratio of 2.22 and a beta of 0.79. The stock’s fifty day moving average price is $233.88 and its 200 day moving average price is $239.02. The company has a debt-to-equity ratio of 0.86, a current ratio of 0.98 and a quick ratio of 0.98. Automatic Data Processing has a 1-year low of $201.46 and a 1-year high of $256.84.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 1st. Shareholders of record on Friday, March 8th will be paid a dividend of $1.40 per share. The ex-dividend date is Thursday, March 7th. This represents a $5.60 annualized dividend and a yield of 2.29%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 66.59%.

Insider Activity

In other news, VP John Ayala sold 1,500 shares of the company’s stock in a transaction that occurred on Tuesday, January 16th. The stock was sold at an average price of $235.13, for a total value of $352,695.00. Following the completion of the sale, the vice president now directly owns 19,183 shares in the company, valued at $4,510,498.79. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.26% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several hedge funds have recently modified their holdings of the stock. Morgan Stanley raised its stake in Automatic Data Processing by 7.8% in the fourth quarter. Morgan Stanley now owns 11,010,014 shares of the business services provider’s stock valued at $2,629,852,000 after buying an additional 794,328 shares in the last quarter. Moneta Group Investment Advisors LLC raised its stake in Automatic Data Processing by 94,265.5% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 6,770,728 shares of the business services provider’s stock valued at $1,617,256,000 after buying an additional 6,763,553 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in Automatic Data Processing by 7.4% in the first quarter. Charles Schwab Investment Management Inc. now owns 6,689,136 shares of the business services provider’s stock valued at $1,522,047,000 after buying an additional 461,438 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Automatic Data Processing by 11.0% during the second quarter. Goldman Sachs Group Inc. now owns 2,391,294 shares of the business services provider’s stock worth $525,583,000 after purchasing an additional 236,985 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Automatic Data Processing during the fourth quarter worth about $531,416,000. 79.37% of the stock is currently owned by institutional investors and hedge funds.

About Automatic Data Processing

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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.

See Also

Earnings History and Estimates for Automatic Data Processing (NASDAQ:ADP)

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