Palisade Asset Management LLC Sells 2,075 Shares of Automatic Data Processing, Inc. $ADP

Palisade Asset Management LLC decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.2% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 62,705 shares of the business services provider’s stock after selling 2,075 shares during the period. Automatic Data Processing accounts for 1.5% of Palisade Asset Management LLC’s portfolio, making the stock its 19th largest position. Palisade Asset Management LLC’s holdings in Automatic Data Processing were worth $16,182,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. BlackRock Inc. purchased a new position in Automatic Data Processing during the second quarter valued at $8,097,229,000. Bank of America Corp DE bought a new stake in Automatic Data Processing in the second quarter worth $1,231,175,000. Deutsche Bank AG bought a new stake in Automatic Data Processing in the second quarter worth $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings 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 worth $952,112,000 after acquiring an additional 129,376 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Automatic Data Processing in the second quarter worth $725,513,000. Institutional investors own 80.03% of the company’s stock.

Key Headlines Impacting Automatic Data Processing

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

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 631 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the transaction, the vice president directly owned 18,824 shares of the company’s stock, valued at approximately $5,324,744.88. This trade represents a 3.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the transaction, the chief executive officer directly owned 80,624 shares in the company, valued at $22,648,087.84. The trade was a 26.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 50,207 shares of company stock valued at $14,522,300 in the last 90 days. 0.15% of the stock is owned by company insiders.

Automatic Data Processing Price Performance

Shares of ADP opened at $303.35 on Friday. The firm has a market cap of $119.75 billion, a PE ratio of 26.89, a P/E/G ratio of 2.72 and a beta of 0.77. 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 firm has a fifty day simple moving average of $279.18 and a two-hundred day simple moving average of $241.91. 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 released its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.77 by $0.05. The firm had revenue of $5.49 billion for the quarter, compared to the consensus estimate of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same period last year, the business posted $2.49 EPS. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

Analyst Upgrades and Downgrades

ADP has been the subject of several recent analyst reports. Cantor Fitzgerald lifted their price target on Automatic Data Processing from $310.00 to $336.00 and gave the stock an “overweight” rating in a research report on Friday, October 30th. Wells Fargo & Company increased their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Stifel Nicolaus increased their price objective on shares of Automatic Data Processing from $285.00 to $305.00 and gave the company a “hold” rating in a research report on Thursday, October 29th. UBS Group raised their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Finally, 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 report on Thursday, October 29th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $285.00.

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.