Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 7,487 Shares of Company Stock

Key Points

• ADP VP Michael Bonarti sold 7,487 shares for about $2.25 million, reducing his direct ownership by 8.38%; the sale was made under a pre-arranged Rule 10b5-1 plan.
• ADP’s latest quarter beat analyst expectations, reporting EPS of $2.82 and revenue of $5.49 billion, up 6.1% year over year.
• Analyst views are mixed, with a consensus Hold rating and average price target of $285; Cantor Fitzgerald raised its target to $336 and maintained an Overweight rating.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Michael Bonarti sold 7,487 shares of the firm's stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $300.00, for a total transaction of $2,246,100.00. Following the completion of the sale, the vice president directly owned 81,849 shares of the company's stock, valued at approximately $24,554,700. This represents a 8.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Trading Down 0.9%

Shares of ADP traded down $2.77 during trading hours on Tuesday, reaching $296.01. 2,302,565 shares of the company traded hands, compared to its average volume of 2,844,285. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $309.40. 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 company's fifty day moving average price is $277.61 and its two-hundred day moving average price is $241.03. The company has a market capitalization of $117.29 billion, a price-to-earnings ratio of 26.24, a price-to-earnings-growth ratio of 2.58 and a beta of 0.83.

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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 in the prior year, the firm earned $2.49 earnings per share. Automatic Data Processing's revenue was up 6.1% on a year-over-year basis. Equities research analysts predict that Automatic Data Processing, Inc. will post 12.36 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were given a $1.70 dividend. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.3%. Automatic Data Processing's dividend payout ratio is currently 60.28%.

Institutional Trading of Automatic Data Processing

A number of hedge funds have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. purchased a new position in Automatic Data Processing during the second quarter worth $13,283,000. Royal Capital Wealth Management LLC bought a new position in Automatic Data Processing during the second quarter valued at $1,226,000. Canada Pension Plan Investment Board bought a new position in Automatic Data Processing during the second quarter valued at $152,706,000. Fulton Bank N.A. raised its stake in shares of Automatic Data Processing by 192.0% in the second quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock valued at $1,605,000 after acquiring an additional 4,711 shares during the period. Finally, Bank of America Corp DE purchased a new stake in shares of Automatic Data Processing in the second quarter valued at $1,231,175,000. 80.03% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on ADP. UBS Group lifted their price target on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Cantor Fitzgerald increased their price objective on Automatic Data Processing from $310.00 to $336.00 and gave the stock an "overweight" rating in a report on Friday. Royal Bank Of Canada reissued a "sector perform" rating and set a $290.00 price objective on shares of Automatic Data Processing in a research report on Thursday, October 29th. Jefferies Financial Group boosted their target price on shares of Automatic Data Processing from $225.00 to $250.00 and gave the company an "underperform" rating in a report on Wednesday, October 28th. Finally, Morgan Stanley upped their target price on shares of Automatic Data Processing from $286.00 to $288.00 and gave the stock an "equal weight" rating in a research report on Thursday, October 29th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and an average price target of $285.00.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Cantor Fitzgerald raised its price target to $336 from $310 and reiterated an “overweight” rating. ADP’s latest reported quarter also topped EPS and revenue estimates, with revenue up 6.1% year over year. Cantor Fitzgerald analyst ratings
• Positive Sentiment: A dividend-focused article included ADP among companies with a long record of annual payout increases, supporting its appeal to income-oriented investors. Dividend Aristocrats article
• Neutral Sentiment: A report said ADP drew institutional attention following a new filing, but the available details do not specify the filing’s contents or indicate a meaningful change in institutional positioning. ADP institutional-focus article
• Negative Sentiment: VP Virginia Magliulo sold 2,927 shares for about $860,000, reducing her direct stake by 16.45%. The trade was executed under a pre-arranged Rule 10b5-1 plan, which may temper the signal. ADP insider-sale report

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.