Dearborn Partners LLC Sells 29,653 Shares of Automatic Data Processing, Inc. (NASDAQ:ADP)

Key Points

• Dearborn Partners LLC has reduced its stake in Automatic Data Processing, Inc. (ADP) by 11.6%, now holding 226,321 shares valued at approximately $69 million, making it the firm's third-largest investment.
• Recent analyst ratings have been mixed, with BMO Capital Markets issuing a "hold" rating and setting a target price of $340, while other firms have varied in their price targets and recommendations.
• Automatic Data Processing reported earnings of $3.06 per share, exceeding expectations and reflecting a 5.7% revenue increase year-over-year, with analysts predicting a yearly EPS of 9.93.

Dearborn Partners LLC decreased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 11.6% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 226,321 shares of the business services provider's stock after selling 29,653 shares during the quarter. Automatic Data Processing comprises about 3.3% of Dearborn Partners LLC's portfolio, making the stock its 3rd largest holding. Dearborn Partners LLC owned approximately 0.06% of Automatic Data Processing worth $69,148,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Arkadios Wealth Advisors grew its holdings in shares of Automatic Data Processing by 15.0% in the first quarter. Arkadios Wealth Advisors now owns 5,751 shares of the business services provider's stock valued at $1,757,000 after purchasing an additional 748 shares in the last quarter. Eastern Bank lifted its position in Automatic Data Processing by 18.6% during the first quarter. Eastern Bank now owns 83,340 shares of the business services provider's stock valued at $25,463,000 after purchasing an additional 13,057 shares during the last quarter. Vestcor Inc increased its holdings in shares of Automatic Data Processing by 2.5% in the 1st quarter. Vestcor Inc now owns 15,871 shares of the business services provider's stock worth $4,849,000 after buying an additional 391 shares during the last quarter. Harvest Fund Management Co. Ltd lifted its holdings in shares of Automatic Data Processing by 10.8% in the 1st quarter. Harvest Fund Management Co. Ltd now owns 30,896 shares of the business services provider's stock valued at $9,438,000 after acquiring an additional 3,008 shares during the last quarter. Finally, Banque Cantonale Vaudoise purchased a new position in Automatic Data Processing in the first quarter worth about $4,953,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Down 2.9%

Shares of ADP stock traded down $9.06 during mid-day trading on Friday, hitting $300.44. 1,791,558 shares of the stock traded hands, compared to its average volume of 1,385,865. Automatic Data Processing, Inc. has a 52-week low of $256.47 and a 52-week high of $329.93. The stock has a market cap of $121.95 billion, a P/E ratio of 30.10, a P/E/G ratio of 2.84 and a beta of 0.81. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.02. The stock's fifty day moving average is $310.70 and its two-hundred day moving average is $305.12.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the prior year, the company posted $2.09 earnings per share. Automatic Data Processing's revenue for the quarter was up 6.3% compared to the same quarter last year. Equities analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Analyst Upgrades and Downgrades

Several research firms have commented on ADP. BMO Capital Markets raised shares of 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. UBS Group dropped their target price 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. TD Securities increased their price target on Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. 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 report on Thursday. Finally, Mizuho lifted their target price on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $310.69.

Automatic Data Processing Company 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.