Automatic Data Processing, Inc. $ADP Stock Position Lifted by AIA Group Ltd

Key Points

• AIA Group increased its ADP stake by 69% in the third quarter, adding 62,137 shares to hold 152,160 shares valued at about $39.3 million. Institutional investors and hedge funds own roughly 80% of ADP.
• ADP beat quarterly estimates, reporting earnings of $2.82 per share versus $2.77 expected and revenue of $5.49 billion, up 6.1% year over year.
• Analysts’ average rating is Hold, with an average price target of $285; Cantor Fitzgerald raised its target to $336 and maintained an Overweight rating.

AIA Group Ltd raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 69.0% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 152,160 shares of the business services provider's stock after acquiring an additional 62,137 shares during the quarter. AIA Group Ltd's holdings in Automatic Data Processing were worth $39,266,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. acquired a new position in Automatic Data Processing in the 2nd quarter valued at approximately $13,283,000. Royal Capital Wealth Management LLC acquired a new stake in shares of Automatic Data Processing during the second quarter worth $1,226,000. Canada Pension Plan Investment Board bought a new position in Automatic Data Processing during the second quarter worth $152,706,000. Fulton Bank N.A. raised its stake in Automatic Data Processing by 192.0% during the second quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock worth $1,605,000 after buying an additional 4,711 shares during the last quarter. Finally, Murphy Pohlad Asset Management LLC acquired a new position in Automatic Data Processing in the second quarter valued at $1,044,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing News Roundup

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%

Shares of NASDAQ:ADP opened at $296.01 on Wednesday. The business's 50-day moving average is $277.87 and its 200 day moving average is $241.22. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $309.40. The firm has a market capitalization of $116.85 billion, a P/E ratio of 26.09, a P/E/G ratio of 2.68 and a beta of 0.77. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.03 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results 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. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same quarter last year, the company earned $2.49 earnings per share. The company's quarterly revenue was up 6.1% on a year-over-year basis. On average, research analysts predict that Automatic Data Processing, Inc. will post 12.37 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have issued reports on ADP shares. Jefferies Financial Group boosted their price target on Automatic Data Processing from $225.00 to $250.00 and gave the company an "underperform" rating in a research note on Wednesday, October 28th. Wells Fargo & Company raised their target price on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Citigroup boosted their target price on Automatic Data Processing from $287.00 to $295.00 and gave the company a "neutral" rating in a research note on Thursday, October 29th. BMO Capital Markets raised their target price on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Finally, Cantor Fitzgerald lifted their target price on Automatic Data Processing from $310.00 to $336.00 and gave the company an "overweight" rating in a research report on Friday, October 30th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $285.00.

Insider Buying and Selling at Automatic Data Processing

In related news, VP Brian L. Michaud sold 120 shares of the company's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the transaction, the vice president directly owned 18,442 shares of the company's stock, valued at $5,158,227.40. This represents a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 the firm's stock in a transaction on Monday, November 2nd. The stock was 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 41,773 shares of company stock valued at $11,915,182. 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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