Equities analysts expect Automatic Data Processing (NASDAQ:ADP) to announce $3.44 billion in sales for the current quarter, Zacks Investment Research reports. Eight analysts have issued estimates for Automatic Data Processing’s earnings. The lowest sales estimate is $3.42 billion and the highest is $3.48 billion. Automatic Data Processing reported sales of $3.24 billion in the same quarter last year, which indicates a positive year-over-year growth rate of 6.2%. The firm is scheduled to announce its next quarterly earnings report on Wednesday, January 30th.
According to Zacks, analysts expect that Automatic Data Processing will report full year sales of $14.18 billion for the current fiscal year, with estimates ranging from $14.15 billion to $14.20 billion. For the next year, analysts forecast that the company will report sales of $15.16 billion, with estimates ranging from $14.95 billion to $15.36 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of analysts that that provide coverage for Automatic Data Processing.
Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 31st. The business services provider reported $1.20 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.11 by $0.09. Automatic Data Processing had a return on equity of 50.96% and a net margin of 12.71%. The company had revenue of $3.32 billion during the quarter, compared to analyst estimates of $3.28 billion. During the same quarter in the previous year, the company posted $0.94 earnings per share. Automatic Data Processing’s revenue was up 8.0% compared to the same quarter last year.
Several analysts have issued reports on the company. Guggenheim assumed coverage on Automatic Data Processing in a report on Monday, August 20th. They set a “buy” rating and a $175.00 price target for the company. Zacks Investment Research lowered Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Tuesday, August 14th. Argus boosted their price target on Automatic Data Processing from $145.00 to $150.00 and gave the company a “buy” rating in a report on Monday, August 13th. BidaskClub raised Automatic Data Processing from a “buy” rating to a “strong-buy” rating in a report on Wednesday, August 15th. Finally, Barclays assumed coverage on Automatic Data Processing in a report on Wednesday, November 14th. They set an “overweight” rating and a $168.00 price target for the company. Eight analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of “Buy” and an average price target of $151.19.
In other news, CEO Carlos A. Rodriguez sold 101,620 shares of the company’s stock in a transaction dated Thursday, November 8th. The stock was sold at an average price of $147.46, for a total value of $14,984,885.20. Following the completion of the transaction, the chief executive officer now owns 199,405 shares of the company’s stock, valued at $29,404,261.30. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Michael C. Eberhard sold 9,100 shares of the company’s stock in a transaction dated Friday, September 21st. The stock was sold at an average price of $150.00, for a total value of $1,365,000.00. Following the completion of the transaction, the vice president now directly owns 48,468 shares of the company’s stock, valued at approximately $7,270,200. The disclosure for this sale can be found here. In the last ninety days, insiders sold 174,088 shares of company stock valued at $25,575,849. Corporate insiders own 0.33% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Oak Ridge Investments LLC lifted its position in shares of Automatic Data Processing by 6.6% in the third quarter. Oak Ridge Investments LLC now owns 5,591 shares of the business services provider’s stock worth $842,000 after buying an additional 348 shares in the last quarter. Atria Investments LLC raised its position in Automatic Data Processing by 1.3% during the third quarter. Atria Investments LLC now owns 27,201 shares of the business services provider’s stock valued at $4,098,000 after purchasing an additional 350 shares during the period. Spearhead Capital Advisors LLC raised its position in Automatic Data Processing by 0.8% during the third quarter. Spearhead Capital Advisors LLC now owns 47,246 shares of the business services provider’s stock valued at $7,054,000 after purchasing an additional 373 shares during the period. First Midwest Bank Trust Division raised its position in Automatic Data Processing by 5.1% during the second quarter. First Midwest Bank Trust Division now owns 7,859 shares of the business services provider’s stock valued at $1,054,000 after purchasing an additional 380 shares during the period. Finally, Arizona State Retirement System raised its position in Automatic Data Processing by 0.4% during the third quarter. Arizona State Retirement System now owns 108,581 shares of the business services provider’s stock valued at $16,359,000 after purchasing an additional 383 shares during the period. 77.93% of the stock is owned by hedge funds and other institutional investors.
Shares of ADP traded down $3.80 during trading hours on Friday, hitting $143.61. The stock had a trading volume of 3,947,504 shares, compared to its average volume of 2,225,884. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing has a 12 month low of $107.61 and a 12 month high of $153.51. The firm has a market capitalization of $64.53 billion, a P/E ratio of 33.01, a PEG ratio of 2.24 and a beta of 0.89.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 1st. Stockholders of record on Friday, December 14th will be paid a $0.79 dividend. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.69. The ex-dividend date of this dividend is Thursday, December 13th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 2.20%. Automatic Data Processing’s dividend payout ratio is 63.45%.
About Automatic Data Processing
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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