What Analysts Are Saying About Automatic Data Processing Stock

In the latest quarter, 4 analysts provided ratings for Automatic Data Processing ADP, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $248.75, a high estimate of $267.00, and a low estimate of $235.00. This upward trend is apparent, with the current average reflecting a 14.63% increase from the previous average price target of $217.00.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Automatic Data Processing's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Automatic Data Processing. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Automatic Data Processing compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Automatic Data Processing's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Automatic Data Processing's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Automatic Data Processing analyst ratings.

All You Need to Know About Automatic Data Processing

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

Automatic Data Processing: Financial Performance Dissected

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Automatic Data Processing's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 5.79%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Automatic Data Processing's net margin excels beyond industry benchmarks, reaching 19.94%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Automatic Data Processing's ROE stands out, surpassing industry averages. With an impressive ROE of 24.62%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Automatic Data Processing's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.71%, the company showcases efficient use of assets and strong financial health.

Debt Management: Automatic Data Processing's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.96.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.