Automatic Data Processing (NASDAQ:ADP) Stock Price Down 6%

Shares of Automatic Data Processing, Inc. (NASDAQ:ADPGet Rating) were down 6% during mid-day trading on Wednesday . The stock traded as low as $223.66 and last traded at $224.85. Approximately 1,907,623 shares changed hands during trading, an increase of 13% from the average daily volume of 1,691,351 shares. The stock had previously closed at $239.15.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. StockNews.com lowered shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Thursday, November 17th. Cowen lifted their target price on Automatic Data Processing to $237.00 in a research note on Thursday, October 27th. Wolfe Research increased their price target on Automatic Data Processing from $220.00 to $225.00 in a research report on Thursday, January 5th. Mizuho boosted their price objective on Automatic Data Processing from $276.00 to $285.00 and gave the company a “buy” rating in a research report on Monday, December 12th. Finally, Morgan Stanley increased their target price on Automatic Data Processing from $245.00 to $250.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 27th. Five equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $244.45.

Automatic Data Processing Stock Down 5.7 %

The stock has a market capitalization of $93.54 billion, a P/E ratio of 31.63, a PEG ratio of 2.47 and a beta of 0.85. The stock’s fifty day moving average is $249.15 and its two-hundred day moving average is $241.57. The company has a debt-to-equity ratio of 1.16, a current ratio of 0.97 and a quick ratio of 0.97.

Automatic Data Processing (NASDAQ:ADPGet Rating) last released its quarterly earnings results on Wednesday, October 26th. The business services provider reported $1.86 earnings per share for the quarter, beating analysts’ consensus estimates of $1.78 by $0.08. Automatic Data Processing had a return on equity of 80.50% and a net margin of 17.93%. The business had revenue of $4.22 billion during the quarter, compared to analyst estimates of $4.16 billion. During the same quarter last year, the company posted $1.65 EPS. Automatic Data Processing’s revenue for the quarter was up 10.3% on a year-over-year basis. As a group, research analysts predict that Automatic Data Processing, Inc. will post 8.12 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Saturday, April 1st. Investors of record on Friday, March 10th will be issued a dividend of $1.25 per share. The ex-dividend date of this dividend is Thursday, March 9th. This represents a $5.00 annualized dividend and a dividend yield of 2.22%. Automatic Data Processing’s dividend payout ratio is 69.16%.

Insider Activity

In other news, insider Carlos A. Rodriguez sold 52,254 shares of the stock in a transaction dated Thursday, January 5th. The stock was sold at an average price of $234.15, for a total transaction of $12,235,274.10. Following the transaction, the insider now owns 44,481 shares of the company’s stock, valued at approximately $10,415,226.15. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In related news, insider Carlos A. Rodriguez sold 37,594 shares of the firm’s stock in a transaction on Monday, January 9th. The stock was sold at an average price of $241.29, for a total value of $9,071,056.26. Following the completion of the transaction, the insider now directly owns 44,481 shares of the company’s stock, valued at $10,732,820.49. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Carlos A. Rodriguez sold 52,254 shares of the stock in a transaction on Thursday, January 5th. The shares were sold at an average price of $234.15, for a total transaction of $12,235,274.10. Following the completion of the transaction, the insider now owns 44,481 shares of the company’s stock, valued at approximately $10,415,226.15. The disclosure for this sale can be found here. Insiders sold a total of 106,557 shares of company stock worth $25,351,834 in the last three months. 0.33% of the stock is owned by insiders.

Institutional Trading of Automatic Data Processing

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Centerpoint Advisors LLC bought a new position in Automatic Data Processing during the 4th quarter valued at about $30,000. Hexagon Capital Partners LLC acquired a new stake in Automatic Data Processing during the 2nd quarter valued at $26,000. Wellington Shields & Co. LLC acquired a new position in Automatic Data Processing in the second quarter worth $29,000. Cowa LLC bought a new stake in shares of Automatic Data Processing during the third quarter worth $34,000. Finally, Castle Wealth Management LLC acquired a new stake in shares of Automatic Data Processing in the second quarter valued at $42,000. Institutional investors own 79.24% of the company’s stock.

About Automatic Data Processing

(Get Rating)

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.

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