Investors Buy Shares of Automatic Data Processing, Inc. (ADP) on Weakness

Traders purchased shares of Automatic Data Processing, Inc. (NASDAQ:ADP) on weakness during trading on Thursday. $85.53 million flowed into the stock on the tick-up and $22.17 million flowed out of the stock on the tick-down, for a money net flow of $63.36 million into the stock. Of all companies tracked, Automatic Data Processing had the 16th highest net in-flow for the day. Automatic Data Processing traded down ($0.35) for the day and closed at $110.21

ADP has been the subject of a number of recent analyst reports. BidaskClub upgraded shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a report on Thursday, September 28th. BMO Capital Markets decreased their price objective on shares of Automatic Data Processing from $122.00 to $114.00 and set an “outperform” rating for the company in a report on Friday, November 3rd. Morgan Stanley lowered shares of Automatic Data Processing from an “equal weight” rating to an “underweight” rating and boosted their price objective for the stock from $98.00 to $100.00 in a report on Thursday, August 3rd. Bank of America Corporation boosted their price objective on shares of Automatic Data Processing from $111.00 to $114.00 and gave the stock a “neutral” rating in a report on Friday, October 13th. Finally, Barclays PLC restated an “equal weight” rating and issued a $105.00 price objective on shares of Automatic Data Processing in a report on Tuesday, August 15th. Thirteen investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $112.37.

The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $49,032.22, a PE ratio of 29.56, a P/E/G ratio of 2.83 and a beta of 0.87.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Thursday, November 2nd. The business services provider reported $0.91 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.06. Automatic Data Processing had a net margin of 14.08% and a return on equity of 42.34%. The business had revenue of $3.08 billion during the quarter, compared to the consensus estimate of $3.06 billion. During the same quarter in the previous year, the firm posted $0.86 EPS. The firm’s revenue was up 5.6% on a year-over-year basis. research analysts predict that Automatic Data Processing, Inc. will post 3.91 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Monday, January 1st. Shareholders of record on Friday, December 8th will be given a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 2.29%. The ex-dividend date is Thursday, December 7th. This is an increase from Automatic Data Processing’s previous quarterly dividend of $0.57. Automatic Data Processing’s payout ratio is 58.02%.

In other Automatic Data Processing news, VP Brock Albinson sold 3,663 shares of Automatic Data Processing stock in a transaction that occurred on Friday, September 1st. The shares were sold at an average price of $106.54, for a total value of $390,256.02. Following the completion of the sale, the vice president now owns 6,287 shares of the company’s stock, valued at approximately $669,816.98. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Maria Black sold 631 shares of Automatic Data Processing stock in a transaction that occurred on Saturday, September 2nd. The stock was sold at an average price of $106.64, for a total transaction of $67,289.84. Following the completion of the sale, the vice president now directly owns 10,550 shares of the company’s stock, valued at approximately $1,125,052. The disclosure for this sale can be found here. Insiders own 0.25% of the company’s stock.

A number of large investors have recently bought and sold shares of the business. Washington Trust Bank lifted its stake in Automatic Data Processing by 0.4% in the 2nd quarter. Washington Trust Bank now owns 3,392 shares of the business services provider’s stock worth $348,000 after purchasing an additional 12 shares in the last quarter. Guardian Life Insurance Co. of America raised its position in Automatic Data Processing by 0.7% in the 1st quarter. Guardian Life Insurance Co. of America now owns 1,740 shares of the business services provider’s stock worth $178,000 after purchasing an additional 12 shares during the period. Personal Capital Advisors Corp raised its position in Automatic Data Processing by 0.7% in the 2nd quarter. Personal Capital Advisors Corp now owns 2,371 shares of the business services provider’s stock worth $243,000 after purchasing an additional 16 shares during the period. Flagship Harbor Advisors LLC raised its position in Automatic Data Processing by 0.6% in the 1st quarter. Flagship Harbor Advisors LLC now owns 2,778 shares of the business services provider’s stock worth $282,000 after purchasing an additional 16 shares during the period. Finally, Proficio Capital Partners LLC raised its position in Automatic Data Processing by 1.8% in the 2nd quarter. Proficio Capital Partners LLC now owns 964 shares of the business services provider’s stock worth $111,000 after purchasing an additional 17 shares during the period. 78.41% of the stock is owned by institutional investors and hedge funds.

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About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services.

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