Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells $231,269.50 in Stock

Key Points

• ADP VP Jonathan Lehberger sold 770 shares for $231,269.50 at an average price of $300.35, reducing his ownership by 13.44% to 4,961 shares. The sale was made under a pre-arranged Rule 10b5-1 plan.
• ADP’s latest quarter beat estimates, with earnings of $2.82 per share and revenue of $5.49 billion, up 6.1% year over year.
• Analysts maintain a consensus Hold rating, with an average price target of $285; ADP shares recently traded at $307.14.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Jonathan Lehberger sold 770 shares of the company's stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $300.35, for a total transaction of $231,269.50. Following the sale, the vice president directly owned 4,961 shares in the company, valued at approximately $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 this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Price Performance

Shares of ADP stock traded up $3.60 during trading hours on Thursday, reaching $307.14. The stock had a trading volume of 3,207,263 shares, compared to its average volume of 2,850,441. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98. The stock's fifty day simple moving average is $278.29 and its 200 day simple moving average is $241.44. The firm has a market capitalization of $121.25 billion, a PE ratio of 27.23, a PEG ratio of 2.66 and a beta of 0.77. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.98.

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

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: ADP’s October National Employment Report showed private employers added 86,000 jobs, above the 69,000 forecast. Hiring was broad-based, and pay continued to rise. The report adds to positive sentiment around ADP’s employment data business, though the figures are not a direct measure of the company’s revenue. October jobs report
• Positive Sentiment: Recent quarterly results beat analyst estimates: ADP reported $2.82 in earnings per share and $5.49 billion in revenue, with revenue up 6.1% year over year. The latest coverage cites earnings among the factors supporting investor interest. ADP fair-value and earnings coverage
• Neutral Sentiment: New articles examine whether ADP’s valuation is justified by its cash flow and report a roughly 13% gap from one fair-value estimate. These analyses highlight potential upside or valuation risk depending on the assumptions used, rather than a clear near-term catalyst. ADP cash-flow valuation analysis ADP fair-value analysis
• Negative Sentiment: Vice President Michael Bonarti sold 7,487 shares for about $2.25 million. The sale was made under a pre-arranged Rule 10b5-1 plan and he retained 81,849 shares, which limits its significance as a bearish signal, but insider selling may still weigh on sentiment. Insider sale report

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. BMO Capital Markets lifted their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. Royal Bank Of Canada restated a "sector perform" rating and issued a $290.00 price objective on shares of Automatic Data Processing in a report on Thursday, October 29th. UBS Group upped their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. Finally, Wells Fargo & Company upped their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $285.00.

Hedge Funds Weigh In On Automatic Data Processing

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

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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