Automatic Data Processing (NASDAQ:ADP) Rating Lowered to Underperform at Evercore ISI

Automatic Data Processing (NASDAQ:ADP) was downgraded by analysts at Evercore ISI from an “outperform” rating to an “underperform” rating in a report issued on Tuesday, AR Network reports. They presently have a $143.00 price objective on the business services provider’s stock, down from their previous price objective of $197.00. Evercore ISI’s price target would suggest a potential downside of 13.15% from the company’s current price.

A number of other brokerages have also recently commented on ADP. Jefferies Financial Group increased their target price on Automatic Data Processing from $135.00 to $168.00 and gave the company a “hold” rating in a report on Wednesday, October 28th. Barclays increased their price objective on Automatic Data Processing from $145.00 to $180.00 and gave the company an “overweight” rating in a research note on Monday, November 2nd. Wells Fargo & Company assumed coverage on shares of Automatic Data Processing in a research note on Friday, December 18th. They set an “overweight” rating and a $200.00 target price on the stock. BMO Capital Markets increased their target price on shares of Automatic Data Processing from $149.00 to $165.00 and gave the company a “market perform” rating in a research report on Thursday, October 29th. Finally, Zacks Investment Research upgraded shares of Automatic Data Processing from a “sell” rating to a “hold” rating and set a $146.00 price target on the stock in a research report on Wednesday, September 30th. Four equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and three have issued a buy rating to the company. Automatic Data Processing currently has a consensus rating of “Hold” and an average target price of $158.00.

Shares of ADP stock opened at $164.66 on Tuesday. Automatic Data Processing has a 1-year low of $103.11 and a 1-year high of $182.32. The company has a market cap of $70.61 billion, a price-to-earnings ratio of 28.59, a PEG ratio of 2.53 and a beta of 0.70. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.08 and a quick ratio of 1.08. The stock has a 50 day simple moving average of $174.09 and a 200-day simple moving average of $153.43.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, October 28th. The business services provider reported $1.41 EPS for the quarter, topping the consensus estimate of $0.97 by $0.44. Automatic Data Processing had a net margin of 17.07% and a return on equity of 46.13%. The company had revenue of $3.47 billion during the quarter, compared to analyst estimates of $3.29 billion. During the same quarter in the previous year, the firm earned $1.34 EPS. Analysts anticipate that Automatic Data Processing will post 5.64 earnings per share for the current fiscal year.

In other news, VP Deborah L. Dyson sold 600 shares of the business’s stock in a transaction that occurred on Monday, January 11th. The shares were sold at an average price of $170.93, for a total value of $102,558.00. Following the sale, the vice president now directly owns 24,786 shares of the company’s stock, valued at approximately $4,236,670.98. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Joseph Desilva sold 450 shares of the company’s stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $160.00, for a total transaction of $72,000.00. Following the completion of the transaction, the vice president now owns 2,855 shares in the company, valued at $456,800. The disclosure for this sale can be found here. In the last three months, insiders have sold 77,731 shares of company stock valued at $12,957,058. 0.34% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bainco International Investors acquired a new stake in shares of Automatic Data Processing during the fourth quarter worth about $34,000. Glassman Wealth Services lifted its holdings in Automatic Data Processing by 67.8% during the 3rd quarter. Glassman Wealth Services now owns 198 shares of the business services provider’s stock worth $28,000 after buying an additional 80 shares in the last quarter. Advisory Alpha LLC purchased a new position in Automatic Data Processing in the 3rd quarter valued at approximately $29,000. Sun Life Financial INC acquired a new position in shares of Automatic Data Processing in the third quarter worth $36,000. Finally, ELM Advisors LLC purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth $48,000. 79.65% of the stock is owned by institutional investors and hedge funds.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

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