Automatic Data Processing (NASDAQ:ADP) VP Sells $231,269.50 in Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Jonathan Lehberger sold 770 shares of the company’s stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $300.35, for a total value of $231,269.50. Following the completion of the transaction, the vice president owned 4,961 shares in the company, valued at $1,490,036.35. This represents a 13.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Trading Up 1.2%

Automatic Data Processing stock traded up $3.60 during mid-day trading on Thursday, hitting $307.14. The company’s stock had a trading volume of 3,207,263 shares, compared to its average volume of 2,850,441. The firm has a market capitalization of $121.25 billion, a PE ratio of 27.23, a price-to-earnings-growth ratio of 2.66 and a beta of 0.77. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $310.98. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98. The stock’s fifty day moving average is $278.29 and its two-hundred day moving average is $241.44.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The company had revenue of $5.49 billion during the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter last year, the firm earned $2.49 earnings per share. The firm’s quarterly revenue was up 6.1% compared to the same quarter last year. On average, analysts anticipate that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

Key Headlines Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP’s October National Employment Report showed private employers added 86,000 jobs, above the 69,000 forecast. Hiring was broad-based, and pay continued to rise. The report adds to positive sentiment around ADP’s employment data business, though the figures are not a direct measure of the company’s revenue. October jobs report
• Positive Sentiment: Recent quarterly results beat analyst estimates: ADP reported $2.82 in earnings per share and $5.49 billion in revenue, with revenue up 6.1% year over year. The latest coverage cites earnings among the factors supporting investor interest. ADP fair-value and earnings coverage
• Neutral Sentiment: New articles examine whether ADP’s valuation is justified by its cash flow and report a roughly 13% gap from one fair-value estimate. These analyses highlight potential upside or valuation risk depending on the assumptions used, rather than a clear near-term catalyst. ADP cash-flow valuation analysis ADP fair-value analysis
• Negative Sentiment: Vice President Michael Bonarti sold 7,487 shares for about $2.25 million. The sale was made under a pre-arranged Rule 10b5-1 plan and he retained 81,849 shares, which limits its significance as a bearish signal, but insider selling may still weigh on sentiment. Insider sale report

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Morgan Stanley raised their price objective on Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 29th. Citigroup upped their target price on shares of Automatic Data Processing from $287.00 to $295.00 and gave the company a “neutral” rating in a research report on Thursday, October 29th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $290.00 target price on shares of Automatic Data Processing in a research report on Thursday, October 29th. Weiss Ratings raised shares of Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, September 22nd. Finally, Guggenheim reiterated a “buy” rating and set a $340.00 price target on shares of Automatic Data Processing in a research report on Thursday, October 29th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Automatic Data Processing has a consensus rating of “Hold” and a consensus target price of $285.00.

Institutional Trading of Automatic Data Processing

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADP. BlackRock Inc. acquired a new position in Automatic Data Processing during the 2nd quarter worth about $8,097,229,000. Bank of America Corp DE purchased a new position in Automatic Data Processing during the 2nd quarter valued at about $1,231,175,000. Deutsche Bank AG acquired a new position in Automatic Data Processing in the 2nd quarter valued at about $994,937,000. Bank of New York Mellon Corp acquired a new position in Automatic Data Processing in the 2nd quarter valued at about $725,513,000. Finally, Legal & General Group Plc acquired a new position in Automatic Data Processing in the 2nd quarter valued at about $562,425,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

About Automatic Data Processing

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.