Key Points
- ADP VP Michael Bonarti sold 6,812 shares for about $2.11 million, reducing his direct holdings by 7.68% to 81,849 shares. The transaction was made under a pre-arranged Rule 10b5-1 plan.
- ADP reported quarterly EPS of $2.82, ahead of the $2.77 consensus, and revenue of $5.49 billion, slightly above estimates and up 6.1% year over year.
- Analysts have a consensus Hold rating and an average price target of $285; recent ratings range from Buy to Sell.
Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Virginia Magliulo sold 852 shares of the company's stock in a transaction dated Thursday, November 5th. The stock was 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 directly owned 14,865 shares of the company's stock, valued at $4,608,298.65. The trade was a 5.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed 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 transaction of $859,659.90.
Automatic Data Processing Stock Performance
Shares of Automatic Data Processing stock traded down $3.79 during mid-day trading on Friday, hitting $303.35. 2,401,873 shares of the stock were exchanged, compared to its average volume of 2,114,692. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.98. The company has a 50-day simple moving average of $279.18 and a 200 day simple moving average of $241.91. The company has a market capitalization of $119.75 billion, a P/E ratio of 26.89, a P/E/G ratio of 2.68 and a beta of 0.77. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.77 by $0.05. The company had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. Automatic Data Processing'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. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current fiscal year.
Trending Headlines about 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
Analyst Ratings Changes
A number of equities research analysts have recently commented on the company. Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. Citigroup increased their price objective on Automatic Data Processing from $287.00 to $295.00 and gave the company a "neutral" rating in a report on Thursday, October 29th. Guggenheim reaffirmed a "buy" rating and set a $340.00 price objective on shares of Automatic Data Processing in a report on Thursday, October 29th. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $286.00 to $288.00 and gave the company an "equal weight" rating in a report on Thursday, October 29th. Finally, Wells Fargo & Company raised their price target on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $285.00.
View Our Latest Research Report on ADP
Institutional Investors Weigh In On Automatic Data Processing
Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. bought a new position in shares of Automatic Data Processing in the second quarter valued at approximately $8,097,229,000. Bank of America Corp DE purchased a new position in Automatic Data Processing during the second quarter valued at approximately $1,231,175,000. Deutsche Bank AG bought a new stake in Automatic Data Processing during the 2nd quarter worth approximately $994,937,000. Bank of New York Mellon Corp bought a new stake in Automatic Data Processing during the 2nd quarter worth approximately $725,513,000. Finally, Legal & General Group Plc bought a new stake in Automatic Data Processing during the 2nd quarter worth approximately $562,425,000. 80.03% of the stock is currently owned by institutional investors.
Automatic Data Processing Company Profile
(
Get Free Report)
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.
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