Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Update

Automatic Data Processing, Inc. (NASDAQ:ADP) was the recipient of a significant drop in short interest in October. As of October 30th, there was short interest totalling 4,540,000 shares, a drop of 16.5% from the October 15th total of 5,440,000 shares. Currently, 1.1% of the shares of the stock are short sold. Based on an average trading volume of 2,100,000 shares, the days-to-cover ratio is presently 2.2 days.

Several research analysts have commented on ADP shares. Jefferies Financial Group lifted their price target on shares of Automatic Data Processing from $135.00 to $168.00 and gave the stock a “hold” rating in a research note on Wednesday, October 28th. BidaskClub raised shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a research note on Monday, November 2nd. Barclays lifted their target price on shares of Automatic Data Processing from $145.00 to $180.00 and gave the stock an “overweight” rating in a research note on Monday, November 2nd. BMO Capital Markets lifted their target price on shares of Automatic Data Processing from $149.00 to $165.00 and gave the stock a “market perform” rating in a research note on Thursday, October 29th. Finally, Citigroup decreased their target price on shares of Automatic Data Processing from $148.00 to $144.00 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Three investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and four have given a buy rating to the company. Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $159.93.

Shares of ADP stock opened at $171.27 on Friday. Automatic Data Processing has a 12 month low of $103.11 and a 12 month high of $182.32. The stock has a market cap of $73.44 billion, a PE ratio of 29.73, a price-to-earnings-growth ratio of 2.62 and a beta of 0.69. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.34. The company’s fifty day moving average price is $155.67 and its 200-day moving average price is $145.52.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 28th. The business services provider reported $1.41 EPS for the quarter, beating the Zacks’ consensus estimate of $0.97 by $0.44. Automatic Data Processing had a net margin of 17.07% and a return on equity of 46.13%. The firm had revenue of $3.47 billion for the quarter, compared to analysts’ expectations of $3.29 billion. During the same quarter in the previous year, the business posted $1.34 EPS. On average, sell-side analysts forecast that Automatic Data Processing will post 5.64 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Friday, January 1st. Stockholders of record on Friday, December 11th will be given a $0.93 dividend. This represents a $3.72 annualized dividend and a dividend yield of 2.17%. The ex-dividend date of this dividend is Thursday, December 10th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.91. Automatic Data Processing’s payout ratio is currently 61.49%.

In other Automatic Data Processing news, CEO Carlos A. Rodriguez sold 37,593 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, November 11th. The shares were sold at an average price of $172.00, for a total transaction of $6,465,996.00. Also, CEO Carlos A. Rodriguez sold 52,229 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $136.85, for a total transaction of $7,147,538.65. Following the transaction, the chief executive officer now directly owns 116,284 shares in the company, valued at $15,913,465.40. The disclosure for this sale can be found here. Insiders have sold 127,459 shares of company stock worth $19,660,527 over the last three months. Insiders own 0.34% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of ADP. Morgan Stanley raised its position in Automatic Data Processing by 6.5% in the 1st quarter. Morgan Stanley now owns 11,440,067 shares of the business services provider’s stock worth $1,563,628,000 after buying an additional 702,522 shares during the last quarter. Assenagon Asset Management S.A. raised its position in Automatic Data Processing by 14.0% in the 2nd quarter. Assenagon Asset Management S.A. now owns 36,512 shares of the business services provider’s stock worth $5,436,000 after buying an additional 4,478 shares during the last quarter. Nwam LLC raised its position in Automatic Data Processing by 4.0% in the 2nd quarter. Nwam LLC now owns 2,904 shares of the business services provider’s stock worth $432,000 after buying an additional 113 shares during the last quarter. Tarbox Family Office Inc. raised its position in Automatic Data Processing by 86.3% in the 2nd quarter. Tarbox Family Office Inc. now owns 300 shares of the business services provider’s stock worth $45,000 after buying an additional 139 shares during the last quarter. Finally, Janney Montgomery Scott LLC raised its position in Automatic Data Processing by 11.7% in the 2nd quarter. Janney Montgomery Scott LLC now owns 186,115 shares of the business services provider’s stock worth $27,711,000 after buying an additional 19,424 shares during the last quarter. 69.27% of the stock is owned by hedge funds and other institutional investors.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

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