Traders Purchase Large Volume of Automatic Data Processing Put Options (NASDAQ:ADP)

Automatic Data Processing, Inc. (NASDAQ:ADP) was the target of unusually large options trading activity on Monday. Traders bought 2,895 put options on the stock. This represents an increase of 45% compared to the typical volume of 2,000 put options.

Automatic Data Processing Price Performance

ADP stock traded up $3.30 during mid-day trading on Monday, reaching $302.84. The company’s stock had a trading volume of 470,791 shares, compared to its average volume of 1,668,238. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.59. The company’s 50 day moving average is $302.38 and its two-hundred day moving average is $297.72. Automatic Data Processing has a fifty-two week low of $231.27 and a fifty-two week high of $322.84. The stock has a market cap of $123.39 billion, a PE ratio of 31.58, a P/E/G ratio of 3.62 and a beta of 0.74.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 29th. The business services provider reported $2.35 EPS for the quarter, beating the consensus estimate of $2.30 by $0.05. Automatic Data Processing had a return on equity of 80.86% and a net margin of 19.76%. Equities research analysts expect that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 1st. Stockholders of record on Friday, June 13th will be paid a $1.54 dividend. This represents a $6.16 annualized dividend and a dividend yield of 2.03%. The ex-dividend date of this dividend is Friday, June 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 64.23%.

Insider Transactions at Automatic Data Processing

In related news, VP Jonathan S. Lehberger sold 2,324 shares of Automatic Data Processing stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $303.30, for a total transaction of $704,869.20. Following the completion of the sale, the vice president now owns 3,063 shares of the company’s stock, valued at $929,007.90. The trade was a 43.14 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 473 shares of the firm’s stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $306.20, for a total transaction of $144,832.60. Following the transaction, the vice president now directly owns 7,244 shares of the company’s stock, valued at $2,218,112.80. This represents a 6.13 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 4,297 shares of company stock worth $1,307,772. Company insiders own 0.21% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several institutional investors and hedge funds have recently bought and sold shares of ADP. Littlejohn Financial Services Inc. purchased a new position in Automatic Data Processing during the fourth quarter worth about $708,000. Bath Savings Trust Co increased its position in shares of Automatic Data Processing by 2.0% during the fourth quarter. Bath Savings Trust Co now owns 99,299 shares of the business services provider’s stock worth $29,068,000 after acquiring an additional 1,951 shares during the period. Principal Financial Group Inc. raised its position in Automatic Data Processing by 4.5% in the 3rd quarter. Principal Financial Group Inc. now owns 529,690 shares of the business services provider’s stock valued at $146,581,000 after purchasing an additional 22,766 shares in the last quarter. Franklin Resources Inc. lifted its stake in Automatic Data Processing by 8.4% in the third quarter. Franklin Resources Inc. now owns 667,068 shares of the business services provider’s stock worth $194,117,000 after acquiring an additional 51,828 shares during the last quarter. Finally, Relyea Zuckerberg Hanson LLC lifted its position in shares of Automatic Data Processing by 121.7% during the 4th quarter. Relyea Zuckerberg Hanson LLC now owns 12,898 shares of the business services provider’s stock worth $3,776,000 after purchasing an additional 7,080 shares during the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. UBS Group upped their target price on Automatic Data Processing from $318.00 to $324.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 4th. Barclays boosted their price target on Automatic Data Processing from $325.00 to $350.00 and gave the company an “overweight” rating in a report on Monday, February 3rd. StockNews.com cut shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Wednesday, February 5th. Jefferies Financial Group boosted their target price on shares of Automatic Data Processing from $290.00 to $305.00 and gave the company a “hold” rating in a research note on Thursday, January 30th. Finally, Royal Bank of Canada restated a “sector perform” rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, January 30th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $302.30.

Automatic Data Processing Company 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.