Automatic Data Processing, Inc. $ADP Stock: Retirement Systems of Alabama Grows Stake

Key Points

• Retirement Systems of Alabama increased its ADP stake by 21.4% in the third quarter, adding 47,740 shares to reach 270,751 shares valued at about $69.9 million.
• ADP reported quarterly earnings of $2.82 per share, beating estimates by $0.05; revenue rose 6.1% year over year to $5.49 billion.
• Analyst sentiment was mixed but leaned toward a Hold: three analysts rated the stock Buy, nine Hold, and two Sell, with an average price target of $285.

Retirement Systems of Alabama grew its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 21.4% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 270,751 shares of the business services provider's stock after acquiring an additional 47,740 shares during the period. Retirement Systems of Alabama owned 0.07% of Automatic Data Processing worth $69,870,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. BlackRock Inc. bought a new position in Automatic Data Processing in the 2nd quarter worth $8,097,229,000. Bank of America Corp DE purchased a new position in Automatic Data Processing during the second quarter valued at $1,231,175,000. Deutsche Bank AG purchased a new position in Automatic Data Processing during the second quarter valued at $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Automatic Data Processing by 3.1% during 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 valued at $952,112,000 after purchasing an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Automatic Data Processing during the second quarter valued at about $725,513,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $302.06 on Tuesday. The stock has a market cap of $119.24 billion, a PE ratio of 26.78, a price-to-earnings-growth ratio of 2.72 and a beta of 0.77. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $310.98. The firm has a fifty day moving average price of $279.47 and a 200-day moving average price of $242.14. 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 released its 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. The company 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%. Automatic Data Processing's revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.49 EPS. Equities analysts anticipate that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, VP Joseph Desilva sold 631 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the transaction, the vice president directly owned 18,824 shares in the company, valued at $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The sale 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 Virginia Magliulo sold 852 shares of the company's stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $310.01, for a total value of $264,128.52. Following the completion of the transaction, the vice president directly owned 14,865 shares of the company's stock, valued at approximately $4,608,298.65. This trade represents a 5.42% 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 50,207 shares of company stock worth $14,522,300 in the last three months. 0.15% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of brokerages have commented on ADP. UBS Group upped their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. BMO Capital Markets lifted their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $290.00 price objective on shares of Automatic Data Processing in a research report on Thursday, October 29th. Citigroup boosted their price objective 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. Finally, Weiss Ratings raised shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. Three 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. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $285.00.

Automatic Data Processing Company 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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