InvesTrust Takes Position in Automatic Data Processing, Inc. (NASDAQ:ADP)

InvesTrust purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 29,539 shares of the business services provider’s stock, valued at approximately $8,650,000. Automatic Data Processing makes up approximately 2.4% of InvesTrust’s holdings, making the stock its 7th biggest holding.

Several other large investors have also recently bought and sold shares of the business. Itau Unibanco Holding S.A. acquired a new stake in shares of Automatic Data Processing during the 3rd quarter valued at $26,000. Kiely Wealth Advisory Group Inc. acquired a new stake in Automatic Data Processing during the second quarter valued at $27,000. Dunhill Financial LLC grew its stake in Automatic Data Processing by 346.5% in the third quarter. Dunhill Financial LLC now owns 106 shares of the business services provider’s stock valued at $29,000 after purchasing an additional 149 shares in the last quarter. Hexagon Capital Partners LLC increased its position in Automatic Data Processing by 78.5% in the 3rd quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider’s stock worth $32,000 after purchasing an additional 51 shares during the last quarter. Finally, Capital Performance Advisors LLP purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $35,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 362 shares of the company’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $293.83, for a total value of $106,366.46. Following the sale, the vice president now owns 13,706 shares of the company’s stock, valued at $4,027,233.98. The trade was a 2.57 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Sreenivasa Kutam sold 38,975 shares of the firm’s stock in a transaction dated Wednesday, November 6th. The stock was sold at an average price of $300.00, for a total transaction of $11,692,500.00. Following the transaction, the vice president now owns 32,604 shares of the company’s stock, valued at approximately $9,781,200. This represents a 54.45 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 41,062 shares of company stock worth $12,299,550 over the last three months. Company insiders own 0.21% of the company’s stock.

Automatic Data Processing Stock Performance

NASDAQ ADP traded up $3.02 during trading on Wednesday, hitting $291.42. The company’s stock had a trading volume of 529,139 shares, compared to its average volume of 1,112,918. Automatic Data Processing, Inc. has a 52 week low of $231.27 and a 52 week high of $309.63. The firm has a market cap of $118.74 billion, a P/E ratio of 31.10, a price-to-earnings-growth ratio of 3.50 and a beta of 0.79. The firm has a 50 day moving average price of $298.45 and a 200 day moving average price of $277.66. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 30th. The business services provider reported $2.33 EPS for the quarter, beating the consensus estimate of $2.21 by $0.12. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. The firm had revenue of $4.83 billion during the quarter, compared to analysts’ expectations of $4.77 billion. During the same period in the prior year, the company earned $2.08 EPS. The business’s quarterly revenue was up 7.1% compared to the same quarter last year. Equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 1st. Investors of record on Friday, December 13th were given a dividend of $1.54 per share. The ex-dividend date was Friday, December 13th. This is an increase from Automatic Data Processing’s previous quarterly dividend of $1.40. This represents a $6.16 dividend on an annualized basis and a yield of 2.11%. Automatic Data Processing’s dividend payout ratio (DPR) is 65.74%.

Analyst Upgrades and Downgrades

ADP has been the topic of several recent research reports. Citigroup raised their price objective on shares of Automatic Data Processing from $260.00 to $295.00 and gave the company a “neutral” rating in a research report on Wednesday, September 25th. StockNews.com upgraded shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a report on Friday, January 3rd. UBS Group lifted their price objective on shares of Automatic Data Processing from $270.00 to $295.00 and gave the company a “neutral” rating in a research note on Tuesday, October 22nd. Barclays increased their target price on shares of Automatic Data Processing from $310.00 to $325.00 and gave the stock an “overweight” rating in a research report on Monday, November 4th. Finally, TD Cowen boosted their price target on Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a research report on Friday, November 1st. Two analysts have rated the stock with a sell rating, seven have given a hold rating and three have given a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $289.91.

Automatic Data Processing Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.