Key Points
- ADP VP Michael Bonarti sold 7,487 shares for about $2.25 million at $300 per share, reducing his stake by 8.38%; the sale was made under a pre-arranged Rule 10b5-1 plan.
- ADP beat quarterly estimates, reporting EPS of $2.82 versus $2.77 expected and revenue of $5.49 billion, up 6.1% year over year.
- Analysts give ADP a consensus Hold rating, with an average price target of $285; individual targets range from $270 to $340.
Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Michael Bonarti sold 7,487 shares of the stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $300.00, for a total value of $2,246,100.00. Following the sale, the vice president owned 81,849 shares in the company, valued at approximately $24,554,700. This represents a 8.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Automatic Data Processing Stock Down 0.9%
Automatic Data Processing stock opened at $296.01 on Wednesday. The firm has a market cap of $116.85 billion, a price-to-earnings ratio of 26.24, a PEG ratio of 2.68 and a beta of 0.77. The stock has a fifty day simple moving average of $277.87 and a two-hundred day simple moving average of $241.22. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $309.40. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, beating 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 quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the prior year, the company posted $2.49 earnings per share. Equities analysts predict that Automatic Data Processing, Inc. will post 12.37 EPS for the current fiscal year.
Analysts Set New Price Targets
Several equities analysts have issued reports on ADP shares. Royal Bank Of Canada restated a "sector perform" rating and set a $290.00 target price on shares of Automatic Data Processing in a research note on Thursday, October 29th. Wells Fargo & Company raised their price target 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. Guggenheim reiterated a "buy" rating and issued a $340.00 price target on shares of Automatic Data Processing in a research note on Thursday, October 29th. UBS Group boosted 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. Finally, 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. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $285.00.
Read Our Latest Stock Analysis on Automatic Data Processing
Institutional Trading of Automatic Data Processing
A number of hedge funds have recently bought and sold shares of ADP. BlackRock Inc. bought a new stake in Automatic Data Processing during the second quarter valued at approximately $8,097,229,000. Bank of America Corp DE purchased a new stake in Automatic Data Processing during the second quarter valued at approximately $1,231,175,000. Deutsche Bank AG bought a new position in Automatic Data Processing in the second quarter worth approximately $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised 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 worth $952,112,000 after acquiring an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth $725,513,000. Hedge funds and other institutional investors own 80.03% of the company's stock.
Key Automatic Data Processing News
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: Cantor Fitzgerald raised its price target to $336 from $310 and maintained an “overweight” rating. ADP also recently beat quarterly EPS and revenue estimates, with revenue up 6.1% year over year. Cantor Fitzgerald ratings
- Neutral Sentiment: ADP was highlighted as a Dividend Aristocrat with a long history of annual payout increases, supporting its appeal to income-focused investors; the article did not report a new dividend increase. Dividend Aristocrats article
- Negative Sentiment: Two ADP vice presidents disclosed share sales: Michael Bonarti sold 7,487 shares for about $2.25 million, and Virginia Magliulo sold 2,927 shares for about $860,000. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, which makes them a less direct bearish signal, but insider selling can still weigh on sentiment. Bonarti SEC filing Magliulo SEC filing
Automatic Data Processing Company Profile
(
Get Free Report)
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.
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