23,508 Shares in Automatic Data Processing, Inc. $ADP Purchased by Leuthold Group LLC

Key Points

• Leuthold Group initiated a position in Automatic Data Processing, buying 23,508 shares valued at about $6.1 million in the third quarter. Institutional investors collectively own 80.03% of ADP.
• ADP reported quarterly EPS of $2.82, topping estimates of $2.77, while revenue rose 6.1% year over year to $5.49 billion.
• Analysts’ consensus rating is Hold, with an average price target of $285; recent targets range from $250 to $340.

Leuthold Group LLC purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 23,508 shares of the business services provider's stock, valued at approximately $6,066,000.

A number of other large investors also recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Automatic Data Processing during the 2nd quarter worth about $8,097,229,000. Bank of America Corp DE purchased a new position in shares of Automatic Data Processing in the 2nd quarter valued at about $1,231,175,000. Deutsche Bank AG purchased a new position in shares of Automatic Data Processing in the 2nd quarter valued at about $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Automatic Data Processing by 3.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider's stock valued at $952,112,000 after acquiring an additional 129,376 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $725,513,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 0.4%

ADP opened at $302.06 on Tuesday. The business's 50-day simple moving average is $279.47 and its 200-day simple moving average is $242.14. 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, Inc. has a one year low of $188.16 and a one year high of $310.98. The stock has a market capitalization of $119.24 billion, a P/E ratio of 26.78, a price-to-earnings-growth ratio of 2.72 and a beta of 0.77.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.77 by $0.05. The firm had revenue of $5.49 billion during 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 business's revenue was up 6.1% on a year-over-year basis. During the same period in the prior year, the firm earned $2.49 EPS. Analysts anticipate that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

Analysts Set New Price Targets

ADP has been the subject of several recent analyst reports. Jefferies Financial Group boosted their target price on Automatic Data Processing from $225.00 to $250.00 and gave the stock an "underperform" rating in a research note on Wednesday, October 28th. Morgan Stanley increased their price target on shares of 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. Stifel Nicolaus increased their price target on shares of Automatic Data Processing from $285.00 to $305.00 and gave the company a "hold" rating in a research note on Thursday, October 29th. Cantor Fitzgerald raised their price objective on shares of Automatic Data Processing from $310.00 to $336.00 and gave the stock an "overweight" rating in a report on Friday, October 30th. Finally, Guggenheim restated a "buy" rating and set a $340.00 price objective on shares of Automatic Data Processing in a research report on Thursday, October 29th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Automatic Data Processing presently has a consensus rating of "Hold" and a consensus target price of $285.00.

Insider Buying and Selling

In other news, VP Michael Bonarti sold 6,812 shares of the stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $310.00, for a total value of $2,111,720.00. Following the completion of the sale, the vice president directly owned 81,849 shares of the company's stock, valued at approximately $25,373,190. This represents a 7.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm's stock in a transaction that occurred 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 transaction, the chief executive officer owned 80,624 shares in the company, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 50,207 shares of company stock valued at $14,522,300 in the last 90 days. Company insiders own 0.15% of the company's stock.

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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