Keybank National Association OH Buys 5,370 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Keybank National Association OH increased its stake in Automatic Data Processing (ADP) by 2.9%, buying 5,370 shares to hold 190,565 shares valued at about $49.0 million, and roughly 80.03% of ADP is held by institutional investors.
• ADP announced a $6.0 billion share buyback authorization (up to 5.8% of shares), declared a $1.70 quarterly dividend (annualized yield ~3.4%), and posted a quarterly EPS beat of $2.62 vs. $2.57 with $5.36 billion in revenue.
• Analyst sentiment is mixed: the consensus rating is Hold with an average price target of $265.69, while several brokerages have recently cut targets and some have assigned underweight ratings.

Keybank National Association OH boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 190,565 shares of the business services provider's stock after buying an additional 5,370 shares during the quarter. Keybank National Association OH's holdings in Automatic Data Processing were worth $49,019,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Imprint Wealth LLC purchased a new position in Automatic Data Processing during the third quarter valued at approximately $25,000. TruNorth Capital Management LLC purchased a new position in Automatic Data Processing during the third quarter valued at approximately $28,000. Cloud Capital Management LLC purchased a new position in Automatic Data Processing during the third quarter valued at approximately $29,000. Board of the Pension Protection Fund purchased a new position in Automatic Data Processing during the fourth quarter valued at approximately $31,000. Finally, Y.D. More Investments Ltd purchased a new position in Automatic Data Processing during the third quarter valued at approximately $32,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on ADP. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a report on Friday, March 27th. Guggenheim began coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective on the stock. Citigroup cut their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating on the stock in a report on Thursday, January 29th. JPMorgan Chase & Co. cut their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a report on Thursday, January 29th. Finally, UBS Group cut their price objective on shares of Automatic Data Processing from $220.00 to $210.00 and set a "neutral" rating on the stock in a report on Monday, April 13th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $265.69.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the business's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP David Foskett sold 266 shares of the business's stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president owned 10,954 shares of the company's stock, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,809 shares of company stock worth $410,410 over the last three months. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

Shares of ADP opened at $199.17 on Wednesday. The firm has a market capitalization of $80.19 billion, a PE ratio of 19.15 and a beta of 0.85. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93. The company's fifty day moving average price is $206.80 and its 200-day moving average price is $238.99.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating analysts' consensus estimates of $2.57 by $0.05. The firm had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business's quarterly revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the company earned $2.35 earnings per share. On average, equities research analysts predict that Automatic Data Processing, Inc. will post 10.96 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.4%. Automatic Data Processing's payout ratio is currently 65.38%.

Automatic Data Processing declared that its board has initiated a share repurchase plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its stock is undervalued.

Automatic Data Processing Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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