Traders Buy Automatic Data Processing (ADP) on Weakness

Traders purchased shares of Automatic Data Processing (NASDAQ:ADP) on weakness during trading on Tuesday. $113.24 million flowed into the stock on the tick-up and $50.29 million flowed out of the stock on the tick-down, for a money net flow of $62.95 million into the stock. Of all stocks tracked, Automatic Data Processing had the 6th highest net in-flow for the day. Automatic Data Processing traded down ($1.20) for the day and closed at $115.99

Several analysts have recently weighed in on ADP shares. BidaskClub upgraded Automatic Data Processing from a “hold” rating to a “buy” rating in a report on Saturday, September 9th. Royal Bank of Canada restated a “hold” rating and issued a $95.00 price objective on shares of Automatic Data Processing in a report on Friday, September 15th. Zacks Investment Research upgraded Automatic Data Processing from a “sell” rating to a “hold” rating in a report on Monday, October 2nd. Stifel Nicolaus restated a “hold” rating and issued a $108.00 price objective on shares of Automatic Data Processing in a report on Wednesday, October 4th. Finally, Bank of America upped their price objective on Automatic Data Processing from $111.00 to $114.00 and gave the company a “neutral” rating in a report on Friday, October 13th. Eleven investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Automatic Data Processing has a consensus rating of “Hold” and a consensus price target of $114.14.

The company has a market cap of $51,440.00, a price-to-earnings ratio of 29.44, a P/E/G ratio of 2.90 and a beta of 0.86. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.51.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Thursday, November 2nd. The business services provider reported $0.91 EPS for the quarter, beating the consensus estimate of $0.85 by $0.06. Automatic Data Processing had a return on equity of 42.34% and a net margin of 14.08%. The business had revenue of $3.08 billion during the quarter, compared to the consensus estimate of $3.06 billion. During the same period in the prior year, the business posted $0.86 earnings per share. Automatic Data Processing’s revenue was up 5.6% compared to the same quarter last year. equities research analysts anticipate that Automatic Data Processing will post 3.91 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Monday, January 1st. Stockholders of record on Friday, December 8th were issued a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 2.17%. This is an increase from Automatic Data Processing’s previous quarterly dividend of $0.57. The ex-dividend date was Thursday, December 7th. Automatic Data Processing’s dividend payout ratio is currently 63.96%.

A number of institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in Automatic Data Processing by 2.4% in the 2nd quarter. Vanguard Group Inc. now owns 34,999,981 shares of the business services provider’s stock worth $3,586,099,000 after acquiring an additional 811,960 shares in the last quarter. BlackRock Inc. lifted its stake in Automatic Data Processing by 0.8% in the 2nd quarter. BlackRock Inc. now owns 29,869,208 shares of the business services provider’s stock worth $3,060,398,000 after acquiring an additional 237,439 shares in the last quarter. Pershing Square Capital Management L.P. lifted its stake in Automatic Data Processing by 402.5% in the 3rd quarter. Pershing Square Capital Management L.P. now owns 8,798,442 shares of the business services provider’s stock worth $961,846,000 after acquiring an additional 7,047,575 shares in the last quarter. Polen Capital Management LLC lifted its stake in Automatic Data Processing by 2.3% in the 3rd quarter. Polen Capital Management LLC now owns 6,813,929 shares of the business services provider’s stock worth $744,899,000 after acquiring an additional 152,027 shares in the last quarter. Finally, Wells Fargo & Company MN lifted its stake in Automatic Data Processing by 2.9% in the 2nd quarter. Wells Fargo & Company MN now owns 6,794,660 shares of the business services provider’s stock worth $696,182,000 after acquiring an additional 190,717 shares in the last quarter. 78.67% of the stock is owned by hedge funds and other institutional investors.

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About Automatic Data Processing

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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