Automatic Data Processing, Inc. $ADP Shares Newly Acquired by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management acquired a new ADP stake of 105,927 shares in the third quarter, valued at approximately $27.7 million.
• ADP beat quarterly earnings and revenue estimates, with EPS of $2.82 and revenue up 6.1% year over year. Cantor Fitzgerald raised its price target to $336 and maintained an overweight rating.
• ADP executives reported share sales, including two vice presidents’ sales under pre-arranged Rule 10b5-1 plans; insiders sold 41,773 shares worth about $11.9 million over the last three months.

Rakuten Investment Management Inc. bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 105,927 shares of the business services provider's stock, valued at approximately $27,732,000.

Other hedge funds also recently bought and sold shares of the company. Polaris Financial Partners acquired a new stake in shares of Automatic Data Processing during the third quarter valued at about $25,000. Next Level Wealth Planning LLC acquired a new position in shares of Automatic Data Processing in the 3rd quarter worth approximately $26,000. Whipplewood Advisors LLC lifted its holdings 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 worth $29,000 after acquiring an additional 137 shares during the last quarter. Kelly Lawrence W & Associates Inc. CA purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $34,000. Finally, Cornerstone Financial Management LLC boosted its position in shares of Automatic Data Processing by 59.2% during the 2nd quarter. Cornerstone Financial Management LLC now owns 156 shares of the business services provider's stock worth $35,000 after purchasing an additional 58 shares during the period. Hedge funds and other institutional investors own 80.03% of the company's stock.

Key Stories Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Cantor Fitzgerald raised its price target to $336 from $310 and maintained an “overweight” rating. ADP also recently beat quarterly EPS and revenue estimates, with revenue up 6.1% year over year. Cantor Fitzgerald ratings
• Neutral Sentiment: ADP was highlighted as a Dividend Aristocrat with a long history of annual payout increases, supporting its appeal to income-focused investors; the article did not report a new dividend increase. Dividend Aristocrats article
• Negative Sentiment: Two ADP vice presidents disclosed share sales: Michael Bonarti sold 7,487 shares for about $2.25 million, and Virginia Magliulo sold 2,927 shares for about $860,000. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, which makes them a less direct bearish signal, but insider selling can still weigh on sentiment. Bonarti SEC filing Magliulo SEC filing

Automatic Data Processing Trading Down 0.9%

NASDAQ ADP opened at $296.01 on Wednesday. The firm has a 50 day simple moving average of $277.87 and a 200-day simple moving average of $241.22. 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 $309.40. The firm has a market cap of $116.85 billion, a price-to-earnings ratio of 26.24, a PEG ratio of 2.68 and a beta of 0.77.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $5.49 billion during the quarter, compared to analysts' expectations of $5.48 billion. During the same quarter in the previous year, the business posted $2.49 earnings per share. The business's quarterly revenue was up 6.1% compared to the same quarter last year. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.37 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts recently weighed in on ADP shares. BMO Capital Markets lifted their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Wells Fargo & Company upped their price target on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Citigroup raised their price target on Automatic Data Processing from $287.00 to $295.00 and gave the stock a "neutral" rating in a research report on Thursday, October 29th. Weiss Ratings raised Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $290.00 price objective on shares of Automatic Data Processing in a report on Thursday, October 29th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $285.00.

Insider Buying and Selling

In other Automatic Data Processing news, VP Michael Bonarti sold 7,487 shares of the firm's stock in a transaction that occurred 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 $24,554,700. This trade represents a 8.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the completion of the transaction, the vice president owned 18,824 shares of the company's stock, valued at approximately $5,324,744.88. This trade represents a 3.24% decrease in their position. 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 a total of 41,773 shares of company stock worth $11,915,182 over the last three months. 0.15% of the stock is owned by insiders.

Automatic Data Processing Profile

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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