Automatic Data Processing (NASDAQ:ADP) VP Michael Bonarti Sells 7,487 Shares of Company Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Michael Bonarti sold 7,487 shares of the stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $300.00, for a total transaction of $2,246,100.00. Following the completion of the sale, the vice president directly owned 81,849 shares in the company, valued at $24,554,700. This trade represents a 8.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Trading Down 0.9%

NASDAQ ADP traded down $2.77 during trading on Tuesday, hitting $296.01. The stock had a trading volume of 2,302,565 shares, compared to its average volume of 2,844,285. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $309.40. The stock has a 50 day simple moving average of $277.61 and a 200 day simple moving average of $241.03. The stock has a market capitalization of $117.29 billion, a price-to-earnings ratio of 26.24, a P/E/G ratio of 2.58 and a beta of 0.83. 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) last released its earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating analysts’ consensus estimates of $2.77 by $0.05. The firm had revenue of $5.49 billion for the quarter, compared to analysts’ expectations of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The company’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.49 earnings per share. Sell-side analysts predict that Automatic Data Processing, Inc. will post 12.36 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 60.28%.

Key Headlines Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Cantor Fitzgerald raised its price target to $336 from $310 and reiterated an “overweight” rating. ADP’s latest reported quarter also topped EPS and revenue estimates, with revenue up 6.1% year over year. Cantor Fitzgerald analyst ratings
• Positive Sentiment: A dividend-focused article included ADP among companies with a long record of annual payout increases, supporting its appeal to income-oriented investors. Dividend Aristocrats article
• Neutral Sentiment: A report said ADP drew institutional attention following a new filing, but the available details do not specify the filing’s contents or indicate a meaningful change in institutional positioning. ADP institutional-focus article
• Negative Sentiment: VP Virginia Magliulo sold 2,927 shares for about $860,000, reducing her direct stake by 16.45%. The trade was executed under a pre-arranged Rule 10b5-1 plan, which may temper the signal. ADP insider-sale report

Wall Street Analyst Weigh In

Several brokerages have commented on ADP. BMO Capital Markets upped their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research report on Wednesday, July 29th. Citigroup lifted their target price on Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a research report on Thursday, October 29th. UBS Group boosted their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Morgan Stanley upped their price target on shares of Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a report on Thursday, October 29th. Finally, Weiss Ratings raised shares of Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, September 22nd. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $285.00.

Institutional Trading of Automatic Data Processing

Several institutional investors and hedge funds have recently modified their holdings of ADP. Verus Capital Partners LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter worth $204,000. Parallel Advisors LLC increased its stake in shares of Automatic Data Processing by 2.4% during the third quarter. Parallel Advisors LLC now owns 9,819 shares of the business services provider’s stock valued at $2,534,000 after buying an additional 229 shares during the period. Plancorp LLC increased its stake in shares of Automatic Data Processing by 6.0% during the third quarter. Plancorp LLC now owns 2,237 shares of the business services provider’s stock valued at $577,000 after buying an additional 127 shares during the period. May Hill Capital LLC raised its holdings in shares of Automatic Data Processing by 10.2% in the third quarter. May Hill Capital LLC now owns 1,158 shares of the business services provider’s stock valued at $299,000 after acquiring an additional 107 shares in the last quarter. Finally, Alps Advisors Inc. raised its holdings in shares of Automatic Data Processing by 1.2% in the third quarter. Alps Advisors Inc. now owns 36,444 shares of the business services provider’s stock valued at $9,405,000 after acquiring an additional 445 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.