Automatic Data Processing (NASDAQ:ADP) – Analysts at William Blair lifted their FY2019 earnings estimates for shares of Automatic Data Processing in a research note issued to investors on Wednesday, according to Zacks Investment Research. William Blair analyst T. Mchugh now forecasts that the business services provider will post earnings per share of $4.66 for the year, up from their previous estimate of $4.18.
Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, January 31st. The business services provider reported $0.99 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.89 by $0.10. The business had revenue of $3.24 billion for the quarter, compared to the consensus estimate of $3.18 billion. Automatic Data Processing had a net margin of 13.47% and a return on equity of 43.28%. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.87 earnings per share.
Several other brokerages have also recently issued reports on ADP. Citigroup reiterated a “neutral” rating and set a $118.00 target price (up from $110.00) on shares of Automatic Data Processing in a report on Friday, January 12th. BMO Capital Markets dropped their target price on shares of Automatic Data Processing from $122.00 to $121.00 and set an “outperform” rating on the stock in a report on Thursday, February 1st. Zacks Investment Research cut shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Wednesday, January 10th. BidaskClub cut shares of Automatic Data Processing from a “hold” rating to a “sell” rating in a report on Saturday, January 13th. Finally, Stifel Nicolaus increased their target price on shares of Automatic Data Processing from $113.00 to $133.00 and gave the stock a “hold” rating in a report on Thursday, February 1st. Eleven research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $118.43.
Automatic Data Processing (NASDAQ:ADP) traded up $0.17 during mid-day trading on Monday, reaching $111.82. 1,291,400 shares of the company traded hands, compared to its average volume of 2,053,145. The stock has a market cap of $49,491.06, a P/E ratio of 28.96, a PEG ratio of 2.43 and a beta of 0.86. Automatic Data Processing has a 52 week low of $95.50 and a 52 week high of $125.24. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.51.
Institutional investors have recently made changes to their positions in the stock. Acrospire Investment Management LLC purchased a new position in Automatic Data Processing during the 2nd quarter worth approximately $102,000. Legacy Advisors LLC purchased a new position in Automatic Data Processing during the 4th quarter worth approximately $103,000. Truewealth LLC purchased a new position in Automatic Data Processing during the 4th quarter worth approximately $104,000. Proficio Capital Partners LLC raised its position in Automatic Data Processing by 1.8% during the 2nd quarter. Proficio Capital Partners LLC now owns 964 shares of the business services provider’s stock worth $111,000 after buying an additional 17 shares during the last quarter. Finally, Wealthcare Advisory Partners LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter valued at approximately $114,000. 78.55% of the stock is owned by hedge funds and other institutional investors.
In related news, CEO Carlos A. Rodriguez sold 95,756 shares of the stock in a transaction that occurred on Thursday, January 4th. The shares were sold at an average price of $118.09, for a total value of $11,307,826.04. Following the completion of the transaction, the chief executive officer now directly owns 124,722 shares of the company’s stock, valued at approximately $14,728,420.98. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Stuart Sackman sold 238 shares of the stock in a transaction that occurred on Monday, January 22nd. The shares were sold at an average price of $121.65, for a total transaction of $28,952.70. Following the completion of the transaction, the vice president now directly owns 18,676 shares of the company’s stock, valued at $2,271,935.40. The disclosure for this sale can be found here. Insiders sold a total of 149,767 shares of company stock worth $17,801,722 over the last 90 days. Company insiders own 0.25% of the company’s stock.
The company also recently declared a quarterly dividend, which will be paid on Sunday, April 1st. Stockholders of record on Friday, March 9th will be issued a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.25%. The ex-dividend date is Thursday, March 8th. Automatic Data Processing’s dividend payout ratio is currently 65.45%.
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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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