Davis R M Inc. Sells 1,381 Shares of Automatic Data Processing, Inc. (NASDAQ:ADP)

Key Points

• Davis R M Inc. reduced its stake in Automatic Data Processing, Inc. by 4.7%, now holding 27,893 shares worth approximately $8.52 million.
• Automatic Data Processing reported $2.26 EPS for the latest quarter, surpassing analyst expectations and showing a 6.3% revenue growth year-on-year.
• The company's stock currently has a market capitalization of $126.22 billion and a consensus rating of "Hold" from analysts.

Davis R M Inc. trimmed its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 4.7% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 27,893 shares of the business services provider's stock after selling 1,381 shares during the period. Davis R M Inc.'s holdings in Automatic Data Processing were worth $8,522,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. von Borstel & Associates Inc. bought a new stake in shares of Automatic Data Processing in the 1st quarter worth approximately $30,000. Main Street Group LTD boosted its holdings in Automatic Data Processing by 50.7% in the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after acquiring an additional 38 shares in the last quarter. Abound Wealth Management raised its stake in shares of Automatic Data Processing by 58.1% in the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after purchasing an additional 43 shares during the last quarter. Banque de Luxembourg S.A. purchased a new position in shares of Automatic Data Processing in the fourth quarter worth $37,000. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of Automatic Data Processing in the fourth quarter worth $37,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Down 2.9%

ADP stock traded down $9.06 during midday trading on Friday, reaching $300.44. 1,791,558 shares of the company traded hands, compared to its average volume of 1,385,865. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.02 and a current ratio of 1.05. The business has a 50 day moving average of $310.28 and a 200-day moving average of $305.26. Automatic Data Processing, Inc. has a 52-week low of $256.47 and a 52-week high of $329.93. The firm has a market capitalization of $121.95 billion, a price-to-earnings ratio of 30.10, a P/E/G ratio of 2.75 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.03. The firm had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%. The company's revenue for the quarter was up 6.3% on a year-over-year basis. During the same period in the prior year, the business posted $2.09 earnings per share. As a group, sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on ADP shares. Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, June 5th. UBS Group reduced their price objective on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research report on Friday, June 13th. Stifel Nicolaus upped their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research report on Thursday. TD Securities boosted their price target on Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a report on Wednesday, May 21st. Finally, BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a research note on Thursday, July 10th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and two have issued a buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $314.33.

Automatic Data Processing Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.