Automatic Data Processing (NASDAQ:ADP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday. The firm presently has a $133.00 price objective on the business services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 13.06% from the stock’s current price.
According to Zacks, “ADP is a provider of human capital management solutions and integrated computing solutions to vehicle dealers. We note that the stock has outperformed the industry over the past one year. The company also raised fiscal 2018 guidance for revenues and earnings. We note that ADP holds a dominant position in the payroll processing and human capital management (HCM) market, primarily owing to its robust product portfolio. Moreover, activist investor Bill Ackman recently failed to get a position in the company's board. The overwhelming shareholder support for the existing board reflects strong confidence over management’s strategies, which is expected to drive share price in the near term. Nevertheless, we expect investments in new initiatives will continue to weigh on the company’s bottom-line results. Further, increasing competition is a major headwind.”
Other equities analysts also recently issued research reports about the stock. BidaskClub upgraded shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a research report on Thursday, September 28th. Bank of America raised shares of Automatic Data Processing from a “neutral” rating to a “buy” rating in a research note on Tuesday, December 5th. Goldman Sachs Group raised shares of Automatic Data Processing from a “neutral” rating to a “buy” rating and upped their price target for the stock from $116.02 to $135.00 in a research note on Monday, December 11th. Morgan Stanley raised shares of Automatic Data Processing from an “underweight” rating to an “equal” rating and set a $114.00 price target on the stock in a research note on Tuesday, November 14th. Finally, Barclays upped their price target on shares of Automatic Data Processing from $105.00 to $115.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 26th. Eleven research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Automatic Data Processing currently has an average rating of “Hold” and a consensus price target of $114.64.
Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Thursday, November 2nd. The business services provider reported $0.91 EPS for the quarter, beating the consensus estimate of $0.85 by $0.06. Automatic Data Processing had a net margin of 14.08% and a return on equity of 42.34%. The firm had revenue of $3.08 billion during the quarter, compared to the consensus estimate of $3.06 billion. During the same quarter in the prior year, the firm earned $0.86 EPS. Automatic Data Processing’s revenue for the quarter was up 5.6% on a year-over-year basis. analysts expect that Automatic Data Processing will post 3.91 earnings per share for the current year.
In other news, insider Michael A. Bonarti sold 3,900 shares of the stock in a transaction dated Tuesday, January 2nd. The shares were sold at an average price of $116.03, for a total transaction of $452,517.00. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Carlos A. Rodriguez sold 95,756 shares of the stock in a transaction dated Thursday, January 4th. The stock was sold at an average price of $118.09, for a total transaction of $11,307,826.04. Following the transaction, the chief executive officer now owns 124,722 shares in the company, valued at $14,728,420.98. The disclosure for this sale can be found here. Insiders have sold a total of 107,619 shares of company stock worth $12,684,290 over the last ninety days. 0.25% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Proficio Capital Partners LLC raised its stake in shares of Automatic Data Processing by 1.8% during the second quarter. Proficio Capital Partners LLC now owns 964 shares of the business services provider’s stock valued at $111,000 after purchasing an additional 17 shares during the period. Acrospire Investment Management LLC purchased a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $102,000. Wealthcare Advisory Partners LLC purchased a new stake in shares of Automatic Data Processing during the third quarter valued at approximately $114,000. Grove Bank & Trust raised its stake in shares of Automatic Data Processing by 16.4% during the second quarter. Grove Bank & Trust now owns 1,208 shares of the business services provider’s stock valued at $124,000 after purchasing an additional 170 shares during the period. Finally, Family Capital Trust Co purchased a new stake in shares of Automatic Data Processing during the third quarter valued at approximately $137,000. Hedge funds and other institutional investors own 78.67% 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.
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