19,464 Automatic Data Processing, Inc. $ADP Shares Sold by Candriam S.C.A.

Key Points

• Candriam S.C.A. cut its ADP stake by 12.2% in the third quarter, selling 19,464 shares and retaining 139,818 shares worth about $36.2 million. Institutional investors and hedge funds own roughly 80% of ADP.
• ADP beat quarterly earnings expectations, reporting $2.82 per share versus a $2.77 estimate, while revenue rose 6.1% year over year to $5.49 billion.
• Analysts’ consensus rating is Hold, with an average price target of $285. Company insiders also sold shares recently, including sales under pre-arranged trading plans.

Candriam S.C.A. reduced its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 12.2% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 139,818 shares of the business services provider's stock after selling 19,464 shares during the period. Candriam S.C.A.'s holdings in Automatic Data Processing were worth $36,213,000 at the end of the most recent reporting period.

Other institutional investors have also made changes to their positions in the company. Polaris Financial Partners bought a new position in Automatic Data Processing during the third quarter worth about $25,000. Next Level Wealth Planning LLC bought a new stake in shares of Automatic Data Processing in the 3rd quarter valued at approximately $26,000. Whipplewood Advisors LLC grew its stake in shares of Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after purchasing an additional 137 shares during the period. Kelly Lawrence W & Associates Inc. CA bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at approximately $34,000. Finally, Cornerstone Financial Management LLC raised its holdings in shares of Automatic Data Processing by 59.2% in the 2nd quarter. Cornerstone Financial Management LLC now owns 156 shares of the business services provider's stock worth $35,000 after buying an additional 58 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, CEO Maria Black sold 29,810 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares of the company's stock, valued at $22,648,087.84. This trade represents a 26.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael A. Bonarti sold 7,487 shares of Automatic Data Processing stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $300.00, for a total value of $2,246,100.00. Following the completion of the transaction, the vice president owned 81,849 shares of the company's stock, valued at approximately $24,554,700. The trade was a 8.38% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 50,207 shares of company stock worth $14,522,300 over the last ninety days. 0.15% of the stock is owned by insiders.

Analysts Set New Price Targets

Several research firms recently commented on ADP. Jefferies Financial Group raised their target price on Automatic Data Processing from $225.00 to $250.00 and gave the stock an "underperform" rating in a research report on Wednesday, October 28th. Citigroup upped their price target on Automatic Data Processing from $287.00 to $295.00 and gave the company a "neutral" rating in a research report on Thursday, October 29th. Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. UBS Group increased their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Finally, Cantor Fitzgerald lifted their price objective 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 research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $285.00.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $303.35 on Monday. The firm has a market cap 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. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.98. The company's 50-day moving average price is $279.18 and its two-hundred day moving average price is $241.91.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, topping the consensus estimate 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 net margin of 20.33% and a return on equity of 77.01%. The company's quarterly revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.49 earnings per share. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 12.38 EPS for the current fiscal year.

More Automatic Data Processing News

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

Automatic Data Processing Profile

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.

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