Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 852 Shares of Company Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Virginia Magliulo sold 852 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $310.01, for a total transaction of $264,128.52. Following the transaction, the vice president directly owned 14,865 shares in the company, valued at $4,608,298.65. This trade represents a 5.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Virginia Magliulo also recently made the following trade(s):

• On Friday, October 30th, Virginia Magliulo sold 2,927 shares of Automatic Data Processing stock. The stock was sold at an average price of $293.70, for a total value of $859,659.90.

Automatic Data Processing Trading Down 1.2%

ADP traded down $3.79 on Friday, hitting $303.35. 2,351,228 shares of the company were exchanged, compared to its average volume of 2,848,554. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03. The firm has a fifty day simple moving average of $278.80 and a two-hundred day simple moving average of $241.67. The stock has a market capitalization of $119.75 billion, a PE ratio of 26.89, a price-to-earnings-growth ratio of 2.72 and a beta of 0.77. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.98.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly 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 company had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The firm’s revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the business posted $2.49 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current year.

Institutional Investors Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently modified their holdings of the company. AMG National Trust Bank increased its holdings in Automatic Data Processing by 0.3% in the 3rd quarter. AMG National Trust Bank now owns 11,660 shares of the business services provider’s stock valued at $3,009,000 after purchasing an additional 35 shares in the last quarter. Thrive Wealth Management LLC lifted its position in shares of Automatic Data Processing by 3.5% in the 2nd quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider’s stock worth $243,000 after buying an additional 37 shares during the last quarter. Aviance Capital Partners LLC grew its position in shares of Automatic Data Processing by 0.4% during the 3rd quarter. Aviance Capital Partners LLC now owns 9,298 shares of the business services provider’s stock valued at $2,399,000 after buying an additional 37 shares during the last quarter. Tanager Wealth Management LLP raised its stake in Automatic Data Processing by 4.1% during the third quarter. Tanager Wealth Management LLP now owns 971 shares of the business services provider’s stock worth $251,000 after acquiring an additional 38 shares during the period. Finally, AMI Investment Management Inc. grew its holdings in shares of Automatic Data Processing by 3.6% during the third quarter. AMI Investment Management Inc. now owns 1,140 shares of the business services provider’s stock valued at $294,000 after purchasing an additional 40 shares during the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. UBS Group boosted their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Morgan Stanley lifted their price objective on Automatic Data Processing from $286.00 to $288.00 and gave the company an “equal weight” rating in a research note on Thursday, October 29th. Wells Fargo & Company raised their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Jefferies Financial Group raised their target price on shares of Automatic Data Processing from $225.00 to $250.00 and gave the company an “underperform” rating in a report on Wednesday, October 28th. Finally, Cantor Fitzgerald upped their price target on Automatic Data Processing from $310.00 to $336.00 and gave the company an “overweight” rating in a report on Friday, October 30th. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given 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.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: ADP’s October employment report showed private employers added 86,000 jobs, above expectations of 69,000. Continued hiring could support demand for ADP’s payroll and human-resources services. October private-sector hiring report
• Neutral Sentiment: Three ADP vice presidents—Michael Bonarti, Virginia Magliulo and Jonathan Lehberger—reported share sales. Each transaction was made under a pre-arranged Rule 10b5-1 plan, so the sales are not necessarily a signal about their outlook for the company. SEC filing for Bonarti sale SEC filing for Magliulo sale SEC filing for Lehberger sale
• Negative Sentiment: Recent valuation commentary argues ADP may be priced above estimated fair value, including one analysis identifying a potential 13% gap. Such concerns could temper demand for the shares, particularly after a strong run-up. ADP fair-value analysis ADP cash-flow valuation analysis

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) provides payroll processing and human resources technology and services to businesses of varying sizes. Its offerings include payroll administration, tax filing, benefits administration, workforce management, talent management, and human capital management software.

ADP also provides services such as compliance support and professional employer organization solutions, which help businesses manage employment responsibilities. Its products combine software with payroll and HR services to support organizations’ workforce operations.

Founded in 1949 as Automatic Payrolls, Inc, the company has grown from a payroll-processing business into a global provider of HR and workforce solutions.