Vestor Capital LLC Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Vestor Capital opened a new ADP position, buying 30,918 shares worth approximately $7.98 million in the third quarter. Institutional investors collectively own about 80% of the company.
• ADP reported quarterly EPS of $2.82, beating the $2.77 consensus estimate; revenue rose 6.1% year over year to $5.49 billion.
• Analysts’ consensus rating is Hold, with a $285 average price target. Company insiders sold 50,207 shares worth approximately $14.52 million over the last quarter.

Vestor Capital LLC purchased a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 30,918 shares of the business services provider's stock, valued at approximately $7,979,000.

Other institutional investors also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Automatic Data Processing during the second quarter worth about $8,097,229,000. Bank of America Corp DE bought a new stake in Automatic Data Processing in the second quarter worth about $1,231,175,000. Deutsche Bank AG purchased a new position in Automatic Data Processing in the second quarter valued at about $994,937,000. Bank of New York Mellon Corp purchased a new position in Automatic Data Processing in the second quarter valued at about $725,513,000. Finally, Legal & General Group Plc purchased a new position in Automatic Data Processing in the second quarter valued at about $562,425,000. Institutional investors own 80.03% of the company's stock.

Insider Activity

In other news, VP Jonathan Lehberger sold 770 shares of the firm's stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $300.35, for a total value of $231,269.50. Following the completion of the transaction, the vice president directly owned 4,961 shares of the company's stock, valued at $1,490,036.35. This trade represents a 13.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Virginia Magliulo sold 852 shares of the firm's stock in a transaction on Thursday, November 5th. The stock was sold at an average price of $310.01, for a total value of $264,128.52. Following the completion of the transaction, the vice president directly owned 14,865 shares of the company's stock, valued at $4,608,298.65. The trade was a 5.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 50,207 shares of company stock valued at $14,522,300. 0.15% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

ADP has been the subject of a number of research reports. Royal Bank Of Canada reissued a "sector perform" rating and set a $290.00 target price on shares of Automatic Data Processing in a research report on Thursday, October 29th. BMO Capital Markets lifted their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Morgan Stanley upped their price objective on Automatic Data Processing from $286.00 to $288.00 and gave the company an "equal weight" rating in a research note on Thursday, October 29th. Weiss Ratings raised Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. Finally, Citigroup increased their price objective on Automatic Data Processing from $287.00 to $295.00 and gave the company a "neutral" rating in a report on Thursday, October 29th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $285.00.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $302.06 on Tuesday. The company has a market cap of $119.24 billion, a PE ratio of 26.78, a price-to-earnings-growth ratio of 2.72 and a beta of 0.77. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $310.98. The company has a quick ratio of 1.05, a current ratio of 1.03 and a debt-to-equity ratio of 0.98. The firm's 50-day simple moving average is $279.47 and its two-hundred day simple moving average is $242.14.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The company had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same period last year, the firm earned $2.49 EPS. Automatic Data Processing's revenue for the quarter was up 6.1% on a year-over-year basis. Research analysts predict that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current year.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) provides payroll processing and human resources technology and services to businesses of varying sizes. Its offerings include payroll administration, tax filing, benefits administration, workforce management, talent management, and human capital management software.

ADP also provides services such as compliance support and professional employer organization solutions, which help businesses manage employment responsibilities. Its products combine software with payroll and HR services to support organizations' workforce operations.

Founded in 1949 as Automatic Payrolls, Inc, the company has grown from a payroll-processing business into a global provider of HR and workforce solutions.

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