Investors Buy Shares of Automatic Data Processing (ADP) on Weakness

Investors purchased shares of Automatic Data Processing (NYSE:ADP) on weakness during trading hours on Friday. $165.10 million flowed into the stock on the tick-up and $32.67 million flowed out of the stock on the tick-down, for a money net flow of $132.43 million into the stock. Of all companies tracked, Automatic Data Processing had the 26th highest net in-flow for the day. Automatic Data Processing traded down ($0.01) for the day and closed at $106.78

A number of equities research analysts have weighed in on ADP shares. Argus decreased their price target on shares of Automatic Data Processing from $118.00 to $101.50 and set a “buy” rating on the stock in a research note on Wednesday, May 31st. Deutsche Bank AG reaffirmed a “hold” rating and issued a $102.00 price target on shares of Automatic Data Processing in a report on Monday, August 21st. Zacks Investment Research cut Automatic Data Processing from a “hold” rating to a “sell” rating in a report on Tuesday, July 4th. Evercore ISI reaffirmed an “in-line” rating and issued a $115.00 price target on shares of Automatic Data Processing in a report on Sunday, August 20th. Finally, Robert W. Baird reissued a “neutral” rating and set a $95.00 price objective on shares of Automatic Data Processing in a report on Sunday, July 30th. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and two have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $107.81.

The stock has a market cap of $47.45 billion and a PE ratio of 27.74. The company’s 50 day moving average price is $108.76 and its 200 day moving average price is $103.78.

Automatic Data Processing (NYSE:ADP) last posted its quarterly earnings data on Thursday, July 27th. The business services provider reported $0.65 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.02). Automatic Data Processing had a return on equity of 26.39% and a net margin of 8.67%. The firm had revenue of $3.06 billion during the quarter, compared to analysts’ expectations of $3.04 billion. During the same quarter in the previous year, the company posted $0.69 earnings per share. Automatic Data Processing’s revenue for the quarter was up 5.7% compared to the same quarter last year. On average, equities research analysts anticipate that Automatic Data Processing will post $3.81 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Sunday, October 1st. Stockholders of record on Friday, September 8th will be issued a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a dividend yield of 2.14%. The ex-dividend date is Thursday, September 7th.

In other news, VP Donald Weinstein sold 1,933 shares of the company’s stock in a transaction dated Monday, July 3rd. The stock was sold at an average price of $101.98, for a total value of $197,127.34. Following the completion of the transaction, the vice president now directly owns 25,737 shares in the company, valued at approximately $2,624,659.26. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Michael A. Bonarti sold 2,932 shares of the company’s stock in a transaction dated Monday, July 3rd. The stock was sold at an average price of $101.98, for a total value of $299,005.36. Following the completion of the transaction, the insider now owns 46,256 shares of the company’s stock, valued at $4,717,186.88. The disclosure for this sale can be found here. Insiders sold a total of 45,522 shares of company stock valued at $4,953,609 over the last quarter.

A number of hedge funds have recently modified their holdings of ADP. Acrospire Investment Management LLC purchased a new stake in Automatic Data Processing during the 2nd quarter valued at about $102,000. Coconut Grove Bank boosted its holdings in Automatic Data Processing by 79.6% during the 1st quarter. Coconut Grove Bank now owns 1,038 shares of the business services provider’s stock valued at $106,000 after acquiring an additional 460 shares during the period. Grisanti Capital Management LLC boosted its holdings in Automatic Data Processing by 4.5% during the 1st quarter. Grisanti Capital Management LLC now owns 1,045 shares of the business services provider’s stock valued at $107,000 after acquiring an additional 45 shares during the period. Proficio Capital Partners LLC boosted its holdings in Automatic Data Processing by 1.8% during the 2nd quarter. Proficio Capital Partners LLC now owns 964 shares of the business services provider’s stock valued at $111,000 after acquiring an additional 17 shares during the period. Finally, Edmond DE Rothschild Holding S.A. purchased a new stake in Automatic Data Processing during the 1st quarter valued at about $113,000.

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Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services.

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