Automatic Data Processing, Inc. $ADP Shares Bought by GRIMES & Co WEALTH MANAGEMENT LLC

Key Points

• GRIMES & Co Wealth Management increased its ADP position by 49.5% in the third quarter, adding 15,564 shares to reach 46,999 shares worth approximately $12.1 million. Institutional investors collectively own 80.03% of the company.
• ADP reported quarterly earnings of $2.82 per share, exceeding estimates by $0.05, while revenue rose 6.1% year over year to $5.49 billion. The company also pays a $1.70 quarterly dividend, equivalent to a 2.3% annual yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $285; three analysts rate the stock a Buy, nine a Hold, and two a Sell.

GRIMES & Co WEALTH MANAGEMENT LLC lifted its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 49.5% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 46,999 shares of the business services provider's stock after acquiring an additional 15,564 shares during the quarter. GRIMES & Co WEALTH MANAGEMENT LLC's holdings in Automatic Data Processing were worth $12,129,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in ADP. BlackRock Inc. purchased a new position in shares of Automatic Data Processing during the second quarter valued at approximately $8,097,229,000. Bank of America Corp DE bought a new position in shares of Automatic Data Processing during the second quarter valued at approximately $1,231,175,000. Deutsche Bank AG bought a new position in shares of Automatic Data Processing during the second quarter valued at approximately $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Automatic Data Processing by 3.1% in the second 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 worth $952,112,000 after buying an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Automatic Data Processing in the second quarter worth approximately $725,513,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $298.78 on Tuesday. The company has a market capitalization of $118.39 billion, a PE ratio of 24.92, a P/E/G ratio of 2.58 and a beta of 0.83. The company has a 50-day simple moving average of $277.61 and a two-hundred day simple moving average of $241.03. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $309.40. 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 (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, beating analysts' consensus estimates of $2.77 by $0.05. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The business had revenue of $5.49 billion for the quarter, compared to analysts' expectations of $5.48 billion. During the same period last year, the business earned $2.49 EPS. The company's revenue was up 6.1% compared to the same quarter last year. Research analysts expect that Automatic Data Processing, Inc. will post 12.36 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were given a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a yield of 2.3%. Automatic Data Processing's dividend payout ratio is presently 60.28%.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of recent analyst reports. Wells Fargo & Company boosted their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Citigroup increased their target price on Automatic Data Processing from $287.00 to $295.00 and gave the stock a "neutral" rating in a research note on Thursday, October 29th. Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, September 22nd. Guggenheim reiterated a "buy" rating and set a $340.00 target price on shares of Automatic Data Processing in a research report on Thursday, October 29th. Finally, Stifel Nicolaus boosted their target price 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. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $285.00.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 798 shares of Automatic Data Processing stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the transaction, the vice president directly owned 13,193 shares of the company's stock, valued at approximately $3,694,040. The trade was a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Virginia Magliulo sold 2,927 shares of the company's stock in a transaction on Friday, October 30th. The stock was sold at an average price of $293.70, for a total value of $859,659.90. Following the transaction, the vice president directly owned 14,865 shares in the company, valued at approximately $4,365,850.50. The trade was a 16.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 34,286 shares of company stock valued at $9,669,082 over the last three months. Company insiders own 0.15% of the company's stock.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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