Pinnacle Wealth Management Advisory Group LLC Cuts Position in Automatic Data Processing, Inc. (NASDAQ:ADP)

Key Points

• Pinnacle Wealth Management Advisory Group LLC reduced its holdings in Automatic Data Processing, Inc. by 9.2%, now owning 10,675 shares worth approximately $3.26 million.
• Automatic Data Processing reported an EPS of $3.06 for the quarter, exceeding analysts' expectations, with a year-over-year revenue increase of 5.7%.
• Analysts have mixed ratings on ADP, with a consensus rating of "Hold" and a target price of $309.62, reflecting cautious optimism in the market.

Pinnacle Wealth Management Advisory Group LLC trimmed its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 9.2% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 10,675 shares of the business services provider's stock after selling 1,087 shares during the quarter. Pinnacle Wealth Management Advisory Group LLC's holdings in Automatic Data Processing were worth $3,262,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. von Borstel & Associates Inc. purchased a new stake in Automatic Data Processing in the first quarter valued at approximately $30,000. Main Street Group LTD lifted its stake 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 valued at $33,000 after buying an additional 38 shares during the last quarter. Abound Wealth Management lifted its stake in Automatic Data Processing by 58.1% in the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after buying an additional 43 shares during the last quarter. Banque de Luxembourg S.A. purchased a new stake in Automatic Data Processing in the fourth quarter valued at approximately $37,000. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new stake in Automatic Data Processing in the fourth quarter valued at approximately $37,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of research reports. Stifel Nicolaus boosted their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday. Royal Bank Of Canada restated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, June 5th. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a research note on Thursday, July 10th. Mizuho upped their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. Finally, TD Securities increased their price objective on Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research report on Wednesday, May 21st. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and two have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $310.69.

Automatic Data Processing Price Performance

Shares of ADP traded down $0.24 during trading hours on Thursday, reaching $310.70. 850,583 shares of the company traded hands, compared to its average volume of 1,753,027. The stock has a fifty day simple moving average of $310.94 and a 200 day simple moving average of $304.99. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.51. Automatic Data Processing, Inc. has a fifty-two week low of $256.47 and a fifty-two week high of $329.93. The stock has a market capitalization of $126.12 billion, a PE ratio of 31.83, a price-to-earnings-growth ratio of 2.83 and a beta of 0.76.

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 (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 77.33% and a net margin of 19.79%. The firm had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same period last year, the company earned $2.09 EPS. The firm's quarterly revenue was up 6.3% on a year-over-year basis. As a group, research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

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.