Automatic Data Processing (NASDAQ:ADP) VP Sells $178,490.97 in Stock

Key Points

• ADP Vice President Joseph Desilva sold 631 shares for approximately $178,491 under a pre-arranged Rule 10b5-1 trading plan, reducing his holdings by 3.24% to 18,824 shares.
• ADP reported quarterly earnings of $2.64 per share and revenue of $5.47 billion, exceeding analyst estimates; revenue increased 6.8% year over year.
• The company declared a quarterly dividend of $1.70 per share, or $6.80 annualized, representing a 2.4% yield. Analysts’ consensus rating remains “Hold,” with an average price target of $273.50.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Joseph Desilva sold 631 shares of the company's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the transaction, the vice president owned 18,824 shares in the company, valued at $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Price Performance

Shares of ADP stock traded down $5.91 during midday trading on Friday, reaching $277.62. 2,149,532 shares of the company traded hands, compared to its average volume of 3,003,448. The firm's 50 day simple moving average is $261.29 and its two-hundred day simple moving average is $229.88. The firm has a market cap of $110.29 billion, a PE ratio of 25.38, a price-to-earnings-growth ratio of 2.55 and a beta of 0.82. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $302.68.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.Automatic Data Processing's quarterly revenue was up 6.8% on a year-over-year basis. During the same period last year, the business posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities research analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 2.4%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Institutional Investors Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Compass Capital Management Inc. grew its holdings in shares of Automatic Data Processing by 3.0% during the fourth quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock worth $52,400,000 after purchasing an additional 5,899 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new position in Automatic Data Processing during the 2nd quarter worth about $13,283,000. Royal Capital Wealth Management LLC bought a new stake in Automatic Data Processing during the 2nd quarter worth about $1,226,000. Canada Pension Plan Investment Board acquired a new stake in Automatic Data Processing in the 2nd quarter valued at about $152,706,000. Finally, DNB Asset Management AS increased its position in Automatic Data Processing by 11.1% in the 4th quarter. DNB Asset Management AS now owns 152,697 shares of the business services provider's stock valued at $39,278,000 after acquiring an additional 15,287 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Citigroup lifted their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research report on Thursday, July 30th. Morgan Stanley raised their price target on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Cantor Fitzgerald boosted their price target on Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a report on Monday, August 3rd. Wells Fargo & Company increased their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Finally, Stifel Nicolaus lifted their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $273.50.

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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