Cheviot Value Management LLC Invests $358,000 in Automatic Data Processing, Inc. (NASDAQ:ADP)

Key Points

• Cheviot Value Management LLC has acquired 1,178 shares of Automatic Data Processing, Inc. (NASDAQ:ADP), valued at approximately $358,000, marking its entry into the business services provider's stock.
• ADP's shares have recently experienced a decline of 2.9%, with the stock currently showing a market capitalization of $121.95 billion and a price-to-earnings ratio of 30.10.
• ADP reported earnings of $2.26 EPS for the last quarter, surpassing expectations and demonstrating a 6.3% increase in revenue compared to the same period last year.

Cheviot Value Management LLC bought a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,178 shares of the business services provider's stock, valued at approximately $358,000.

Several other large investors have also added to or reduced their stakes in ADP. Brighton Jones LLC grew its stake in Automatic Data Processing by 92.1% during the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock worth $2,935,000 after buying an additional 4,808 shares in the last quarter. Bank Pictet & Cie Europe AG acquired a new stake in Automatic Data Processing during the 4th quarter worth approximately $957,000. World Investment Advisors increased its stake in shares of Automatic Data Processing by 16.9% in the 4th quarter. World Investment Advisors now owns 8,730 shares of the business services provider's stock valued at $2,555,000 after acquiring an additional 1,264 shares in the last quarter. Resona Asset Management Co. Ltd. acquired a new stake in Automatic Data Processing in the 4th quarter valued at $38,497,000. Finally, Aviva PLC grew its position in Automatic Data Processing by 2.8% in the 4th quarter. Aviva PLC now owns 962,810 shares of the business services provider's stock valued at $281,843,000 after purchasing an additional 26,141 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

ADP traded up $1.24 on Thursday, hitting $302.88. 504,624 shares of the company's stock traded hands, compared to its average volume of 1,752,435. The company has a current ratio of 1.05, a quick ratio of 1.02 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a one year low of $258.51 and a one year high of $329.93. The company's 50 day simple moving average is $308.93 and its 200-day simple moving average is $305.30. The firm has a market cap of $122.94 billion, a price-to-earnings ratio of 30.31, a P/E/G ratio of 2.75 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%. The business had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. During the same quarter in the previous year, the company posted $2.09 EPS. The company's revenue was up 6.3% compared to the same quarter last year. As a group, research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be issued a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a yield of 2.0%. Automatic Data Processing's payout ratio is currently 61.72%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a research report on Thursday, July 10th. Morgan Stanley upped their price target on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st. TD Securities upped their target price on Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research note on Wednesday, May 21st. Mizuho increased their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research note on Friday, June 13th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a report on Thursday, June 5th. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $314.33.

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.