Automatic Data Processing (NASDAQ:ADP) Stock: Insider Virginia Magliulo Sells 852 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Virginia Magliulo sold 852 shares of the stock in a transaction dated Thursday, November 5th. The shares were sold at an average price of $310.01, for a total transaction of $264,128.52. Following the completion of the sale, the vice president owned 14,865 shares of the company’s stock, valued at approximately $4,608,298.65. The trade was a 5.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Virginia Magliulo also recently made the following trade(s):

• On Friday, October 30th, Virginia Magliulo sold 2,927 shares of Automatic Data Processing stock. The stock was sold at an average price of $293.70, for a total value of $859,659.90.

Automatic Data Processing Price Performance

ADP stock opened at $303.35 on Friday. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.03 and a quick ratio of 1.05. The business has a 50 day simple moving average of $279.18 and a 200-day simple moving average of $241.91. The firm has a market capitalization of $119.75 billion, a PE ratio of 26.89, a price-to-earnings-growth ratio of 2.72 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.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating 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 firm 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 business’s revenue for the quarter was up 6.1% on a year-over-year basis. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current fiscal year.

Key Automatic Data Processing News

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

• Positive Sentiment: ADP’s October employment report showed private employers added 86,000 jobs, above expectations of 69,000. Continued hiring could support demand for ADP’s payroll and human-resources services. October private-sector hiring report
• Neutral Sentiment: Three ADP vice presidents—Michael Bonarti, Virginia Magliulo and Jonathan Lehberger—reported share sales. Each transaction was made under a pre-arranged Rule 10b5-1 plan, so the sales are not necessarily a signal about their outlook for the company. SEC filing for Bonarti sale SEC filing for Magliulo sale SEC filing for Lehberger sale
• Negative Sentiment: Recent valuation commentary argues ADP may be priced above estimated fair value, including one analysis identifying a potential 13% gap. Such concerns could temper demand for the shares, particularly after a strong run-up. ADP fair-value analysis ADP cash-flow valuation analysis

Analyst Ratings Changes

Several research firms have recently commented on ADP. Jefferies Financial Group lifted their price target on Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a report on Wednesday, October 28th. UBS Group upped their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Stifel Nicolaus raised their price objective on shares of Automatic Data Processing from $285.00 to $305.00 and gave the stock a “hold” rating in a research report on Thursday, October 29th. Citigroup lifted their target price on shares of Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a research note on Thursday, October 29th. Finally, Wells Fargo & Company boosted their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $285.00.

Institutional Investors Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADP. BlackRock Inc. purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth $8,097,229,000. Bank of America Corp DE purchased a new stake in Automatic Data Processing in the 2nd quarter valued at about $1,231,175,000. Deutsche Bank AG acquired a new position in Automatic Data Processing in the second quarter valued at about $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Automatic Data Processing by 3.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider’s stock valued at $952,112,000 after buying an additional 129,376 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Automatic Data Processing in the second quarter valued at about $725,513,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) provides payroll processing and human resources technology and services to businesses of varying sizes. Its offerings include payroll administration, tax filing, benefits administration, workforce management, talent management, and human capital management software.

ADP also provides services such as compliance support and professional employer organization solutions, which help businesses manage employment responsibilities. Its products combine software with payroll and HR services to support organizations’ workforce operations.

Founded in 1949 as Automatic Payrolls, Inc, the company has grown from a payroll-processing business into a global provider of HR and workforce solutions.