Mitsubishi UFJ Trust & Banking Corp Reduces Position in Automatic Data Processing, Inc. $ADP

Key Points

• Mitsubishi UFJ Trust & Banking Corp reduced its stake in Automatic Data Processing by 14.8%, selling 40,553 shares and ending the quarter with 232,949 shares worth about $59.9 million (≈0.06% of ADP).
• Insiders sold 1,809 shares in the last quarter (including VP Brian L. Michaud's 1,000-share sale), totaling roughly $410,410, and now hold about 0.20% of the company.
• ADP announced a $6.00 billion share buyback (up to 5.8% of shares) and a $1.70 quarterly dividend (annualized $6.80, 3.4% yield), while analysts have trimmed targets and the consensus rating is "Hold" with an average price target of $265.69.

Mitsubishi UFJ Trust & Banking Corp lessened its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 14.8% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 232,949 shares of the business services provider's stock after selling 40,553 shares during the quarter. Mitsubishi UFJ Trust & Banking Corp owned about 0.06% of Automatic Data Processing worth $59,921,000 at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of the business. Imprint Wealth LLC bought a new position in Automatic Data Processing in the 3rd quarter worth approximately $25,000. TruNorth Capital Management LLC bought a new stake in Automatic Data Processing during the 3rd quarter valued at $28,000. Cloud Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth $29,000. Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing during the third quarter worth $32,000. Finally, Board of the Pension Protection Fund bought a new position in shares of Automatic Data Processing in the fourth quarter worth $31,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Insider Transactions at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the company's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Foskett sold 266 shares of the stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. This represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,809 shares of company stock valued at $410,410 in the last quarter. Insiders own 0.20% of the company's stock.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $199.17 on Wednesday. The stock has a market cap of $80.19 billion, a P/E ratio of 19.15 and a beta of 0.85. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The business's 50-day moving average price is $206.80 and its two-hundred day moving average price is $238.99. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $329.93.

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

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

Automatic Data Processing Announces Dividend

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

Analysts Set New Price Targets

Several equities analysts have recently weighed in on ADP shares. Citigroup reduced their price target on Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating for the company in a research report on Thursday, January 29th. Wells Fargo & Company cut their target price on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating for the company in a research note on Friday, March 27th. BMO Capital Markets reduced their target price on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a report on Tuesday, April 7th. Morgan Stanley decreased their price target on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research report on Tuesday. Finally, JPMorgan Chase & Co. lowered their price target 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. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $265.69.

About Automatic Data Processing

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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