Key Points
- ADP Vice President Jonathan Lehberger sold 770 shares for about $231,270 at an average price of $300.35, reducing his direct stake by 13.44% to 4,961 shares. The sale was made under a pre-arranged Rule 10b5-1 plan.
- ADP’s latest quarter beat analyst expectations, reporting EPS of $2.82 versus $2.77 expected and revenue of $5.49 billion, up 6.1% year over year.
- Analyst views are mixed: ADP has an overall “Hold” rating and an average price target of $285, while some firms recently raised targets as high as $340.
Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Jonathan Lehberger sold 770 shares of the business's stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $300.35, for a total value of $231,269.50. Following the completion of the sale, the vice president directly owned 4,961 shares in the company, valued at approximately $1,490,036.35. This represents a 13.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Automatic Data Processing Stock Performance
Automatic Data Processing stock opened at $307.14 on Friday. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $310.98. The company has a quick ratio of 1.05, a current ratio of 1.03 and a debt-to-equity ratio of 0.98. The company has a market capitalization of $121.25 billion, a P/E ratio of 27.23, a PEG ratio of 2.72 and a beta of 0.77. The stock's 50 day moving average is $278.80 and its 200 day moving average is $241.67.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data 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. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business had revenue of $5.49 billion during the quarter, compared to analysts' expectations of $5.48 billion. During the same quarter in the previous year, the business earned $2.49 earnings per share. The firm's quarterly revenue was up 6.1% compared to the same quarter last year. On average, equities research analysts predict that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current fiscal year.
Automatic Data Processing News Roundup
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: ADP’s October report showed private-sector employment rose by 86,000, above the 69,000 forecast, with hiring gains across industries. Solid employment activity may support demand for ADP’s payroll and HR services. CNBC report on October hiring
- Positive Sentiment: The company’s latest reported quarter also beat analyst estimates for earnings and revenue, with revenue up 6.1% year over year—an additional fundamental support for the shares.
- Neutral Sentiment: Vice President Jonathan S. Lehberger sold 770 shares for about $231,000. The transaction was made under a pre-arranged Rule 10b5-1 plan, which makes it a less clear signal about his outlook for ADP. SEC filing for Lehberger transaction
- Negative Sentiment: Another vice president, Michael Bonarti, sold shares worth about $2.25 million, also under a 10b5-1 plan. Though planned sales do not necessarily reflect a negative view, multiple insider transactions may weigh on sentiment. Report on Bonarti share sale
- Negative Sentiment: Recent valuation commentary points to a potential 13% gap between ADP’s market price and estimated fair value, while another analysis questions whether its cash flow justifies its valuation. These are estimates, not company guidance, but may limit upside if investors focus on price. ADP fair-value analysis ADP cash-flow valuation analysis
Analyst Upgrades and Downgrades
Several equities analysts have recently weighed in on the company. Cantor Fitzgerald raised their price target on Automatic Data Processing from $310.00 to $336.00 and gave the company an "overweight" rating in a report on Friday, October 30th. BMO Capital Markets increased their price objective on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. Citigroup increased their price objective 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. Guggenheim restated a "buy" rating and set a $340.00 price objective on shares of Automatic Data Processing in a research note on Thursday, October 29th. Finally, Stifel Nicolaus lifted their target price on shares of Automatic Data Processing from $285.00 to $305.00 and gave the stock a "hold" 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 company's stock. Based on data from MarketBeat.com, Automatic Data Processing presently has an average rating of "Hold" and an average price target of $285.00.
Check Out Our Latest Research Report on Automatic Data Processing
Institutional Trading of Automatic Data Processing
Several institutional investors have recently added to or reduced their stakes in ADP. Three Bridge Wealth Advisors LLC bought a new stake in Automatic Data Processing in the 3rd quarter worth about $29,000. CFM Wealth Partners LLC raised its position in Automatic Data Processing by 13.7% in the 3rd quarter. CFM Wealth Partners LLC now owns 1,665 shares of the business services provider's stock worth $430,000 after buying an additional 200 shares during the last quarter. Bourne Lent Asset Management Inc. bought a new position in Automatic Data Processing during the 3rd quarter valued at about $209,000. Maryland State Retirement & Pension System lifted its stake in Automatic Data Processing by 14.8% during the 3rd quarter. Maryland State Retirement & Pension System now owns 24,769 shares of the business services provider's stock valued at $6,392,000 after acquiring an additional 3,199 shares during the period. Finally, Ritholtz Wealth Management lifted its stake in Automatic Data Processing by 24.3% during the 3rd quarter. Ritholtz Wealth Management now owns 16,323 shares of the business services provider's stock valued at $4,212,000 after acquiring an additional 3,190 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.
About Automatic Data Processing
(
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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