Automatic Data Processing (NASDAQ:ADP) VP Sells $2,111,720.00 in Stock

Key Points

• ADP VP Michael Bonarti sold 6,812 shares for $2.11 million at an average price of $310, reducing his holdings by 7.68%. The sale was made under a pre-arranged Rule 10b5-1 plan.
• ADP beat quarterly earnings expectations, reporting EPS of $2.82 versus $2.77 expected and revenue of $5.49 billion, up 6.1% year over year.
• Analysts have a consensus Hold rating on ADP, with an average price target of $285. Shares fell 1.2% in Friday trading to $303.35.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Michael Bonarti sold 6,812 shares of the company's stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $310.00, for a total transaction of $2,111,720.00. Following the sale, the vice president owned 81,849 shares in the company, valued at $25,373,190. The trade was a 7.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Stock Down 1.2%

NASDAQ:ADP traded down $3.79 during mid-day trading on Friday, hitting $303.35. The stock had a trading volume of 2,351,088 shares, compared to its average volume of 2,848,554. The stock has a 50-day simple moving average of $278.80 and a two-hundred day simple moving average of $241.67. The company has a market capitalization of $119.75 billion, a PE ratio of 26.89, a PEG ratio of 2.72 and a beta of 0.77. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $310.98. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results 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 analysts' expectations of $5.48 billion. During the same quarter in the previous year, the business posted $2.49 EPS. The firm's revenue was up 6.1% on a year-over-year basis. On average, equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. bought a new stake in Automatic Data Processing during the second quarter worth approximately $13,283,000. Royal Capital Wealth Management LLC bought a new position in shares of Automatic Data Processing during the 2nd quarter worth about $1,226,000. Canada Pension Plan Investment Board acquired a new position in Automatic Data Processing in the 2nd quarter valued at approximately $152,706,000. Murphy Pohlad Asset Management LLC bought a new stake in shares of Automatic Data Processing during the second quarter worth $1,044,000. Finally, Fulton Bank N.A. lifted its position in Automatic Data Processing by 192.0% during the 2nd quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock valued at $1,605,000 after purchasing an additional 4,711 shares during the period. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on ADP shares. Wells Fargo & Company raised their price target 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. Cantor Fitzgerald increased their price objective on Automatic Data Processing from $310.00 to $336.00 and gave the company an "overweight" rating in a report on Friday, October 30th. Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. BMO Capital Markets raised their target price on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research report on Wednesday, July 29th. Finally, Morgan Stanley boosted their target price on Automatic Data Processing from $286.00 to $288.00 and gave the stock an "equal weight" rating in a research note 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 stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $285.00.

Key Stories Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP’s October employment report showed private employers added 86,000 jobs, above expectations of 69,000. Continued hiring could support demand for ADP’s payroll and human-resources services. October private-sector hiring report
• Neutral Sentiment: Three ADP vice presidents—Michael Bonarti, Virginia Magliulo and Jonathan Lehberger—reported share sales. Each transaction was made under a pre-arranged Rule 10b5-1 plan, so the sales are not necessarily a signal about their outlook for the company. SEC filing for Bonarti sale SEC filing for Magliulo sale SEC filing for Lehberger sale
• Negative Sentiment: Recent valuation commentary argues ADP may be priced above estimated fair value, including one analysis identifying a potential 13% gap. Such concerns could temper demand for the shares, particularly after a strong run-up. ADP fair-value analysis ADP cash-flow valuation analysis

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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