Investors Buy Automatic Data Processing (ADP) on Weakness After Insider Selling

Investors bought shares of Automatic Data Processing (NASDAQ:ADP) on weakness during trading hours on Friday following insider selling activity. $63.67 million flowed into the stock on the tick-up and $22.41 million flowed out of the stock on the tick-down, for a money net flow of $41.26 million into the stock. Of all stocks tracked, Automatic Data Processing had the 16th highest net in-flow for the day. Automatic Data Processing traded down ($0.07) for the day and closed at $118.30Specifically, CEO Carlos A. Rodriguez sold 95,756 shares of the company’s stock in a transaction on Thursday, January 4th. The shares were sold at an average price of $118.09, for a total value of $11,307,826.04. Following the completion of the sale, the chief executive officer now owns 124,722 shares in the company, valued at approximately $14,728,420.98. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Michael A. Bonarti sold 3,900 shares of the company’s stock in a transaction on Tuesday, January 2nd. The shares were sold at an average price of $116.03, for a total transaction of $452,517.00. The disclosure for this sale can be found here. Insiders have sold a total of 107,619 shares of company stock valued at $12,684,290 in the last quarter. 0.25% of the stock is currently owned by company insiders.

Several equities analysts have issued reports on the stock. Zacks Investment Research raised shares of Automatic Data Processing from a “hold” rating to a “buy” rating and set a $133.00 price target on the stock in a research note on Friday. BidaskClub raised shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a research note on Thursday, September 28th. Bank of America increased their price objective on shares of Automatic Data Processing from $111.00 to $114.00 and gave the company a “neutral” rating in a research note on Friday, October 13th. Stifel Nicolaus reissued a “hold” rating and issued a $108.00 price objective on shares of Automatic Data Processing in a research note on Wednesday, October 4th. Finally, Royal Bank of Canada reissued a “hold” rating and issued a $95.00 price objective on shares of Automatic Data Processing in a research note on Friday, September 15th. Eleven research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $114.64.

The firm has a market cap of $52,190.00, a price-to-earnings ratio of 30.04, a price-to-earnings-growth ratio of 2.90 and a beta of 0.85. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.10 and a quick ratio of 1.10.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Thursday, November 2nd. The business services provider reported $0.91 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.85 by $0.06. The business had revenue of $3.08 billion for the quarter, compared to analyst estimates of $3.06 billion. Automatic Data Processing had a net margin of 14.08% and a return on equity of 42.34%. The company’s revenue was up 5.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.86 EPS. sell-side analysts forecast that Automatic Data Processing will post 3.91 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Monday, January 1st. Investors of record on Friday, December 8th were issued a $0.63 dividend. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.57. The ex-dividend date was Thursday, December 7th. This represents a $2.52 annualized dividend and a yield of 2.13%. Automatic Data Processing’s dividend payout ratio (DPR) is presently 63.96%.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Acrospire Investment Management LLC acquired a new stake in Automatic Data Processing in the second quarter valued at approximately $102,000. Proficio Capital Partners LLC grew its position in Automatic Data Processing by 1.8% in the second 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 in the last quarter. Wealthcare Advisory Partners LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth approximately $114,000. Grove Bank & Trust grew its position in shares of Automatic Data Processing by 16.4% during the second quarter. Grove Bank & Trust now owns 1,208 shares of the business services provider’s stock worth $124,000 after buying an additional 170 shares in the last quarter. Finally, Armbruster Capital Management Inc. grew its position in shares of Automatic Data Processing by 2.5% during the second quarter. Armbruster Capital Management Inc. now owns 1,322 shares of the business services provider’s stock worth $135,000 after buying an additional 32 shares in the last quarter. Hedge funds and other institutional investors own 78.67% of the company’s stock.

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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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