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

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Jonathan Lehberger sold 770 shares of the stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $300.35, for a total value of $231,269.50. Following the transaction, the vice president owned 4,961 shares in the company, valued at $1,490,036.35. This trade represents a 13.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $303.35 on Friday. The firm has a market cap of $119.75 billion, a PE ratio of 26.89, a PEG ratio of 2.72 and a beta of 0.77. The firm has a fifty day moving average of $279.18 and a 200 day moving average of $241.91. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $310.98.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, beating the consensus estimate 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 business had revenue of $5.49 billion for the quarter, compared to the consensus estimate of $5.48 billion. During the same period last year, the firm posted $2.49 earnings per share. The company’s revenue was up 6.1% compared to the same quarter last year. As a group, research analysts predict that Automatic Data Processing, Inc. will post 12.38 EPS for the current fiscal year.

More Automatic Data Processing News

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

• Positive Sentiment: ADP’s October employment report showed private employers added 86,000 jobs, above expectations of 69,000. Continued hiring could support demand for ADP’s payroll and human-resources services. October private-sector hiring report
• Neutral Sentiment: Three ADP vice presidents—Michael Bonarti, Virginia Magliulo and Jonathan Lehberger—reported share sales. Each transaction was made under a pre-arranged Rule 10b5-1 plan, so the sales are not necessarily a signal about their outlook for the company. SEC filing for Bonarti sale SEC filing for Magliulo sale SEC filing for Lehberger sale
• Negative Sentiment: Recent valuation commentary argues ADP may be priced above estimated fair value, including one analysis identifying a potential 13% gap. Such concerns could temper demand for the shares, particularly after a strong run-up. ADP fair-value analysis ADP cash-flow valuation analysis

Hedge Funds Weigh In On Automatic Data Processing

A number of institutional investors and hedge funds have recently bought and sold shares of the business. MSH Capital Advisors LLC acquired a new stake in Automatic Data Processing during the 3rd quarter valued at $245,000. Cornerstone Advisory LLC increased its position in Automatic Data Processing by 1.2% during the third quarter. Cornerstone Advisory LLC now owns 3,401 shares of the business services provider’s stock worth $878,000 after buying an additional 40 shares in the last quarter. Vista Capital Partners Inc. acquired a new position in shares of Automatic Data Processing in the third quarter worth $254,000. BankPlus Trust Department raised its holdings in shares of Automatic Data Processing by 4.3% in the third quarter. BankPlus Trust Department now owns 13,635 shares of the business services provider’s stock worth $3,519,000 after acquiring an additional 557 shares during the last quarter. Finally, Moors & Cabot Inc. lifted its position in shares of Automatic Data Processing by 3.8% in the third quarter. Moors & Cabot Inc. now owns 4,979 shares of the business services provider’s stock valued at $1,285,000 after acquiring an additional 184 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ADP has been the topic of several research analyst reports. Guggenheim reiterated a “buy” rating and issued a $340.00 price objective on shares of Automatic Data Processing in a report on Thursday, October 29th. Stifel Nicolaus increased their target price on Automatic Data Processing from $285.00 to $305.00 and gave the company a “hold” rating in a report on Thursday, October 29th. Cantor Fitzgerald raised their target price on Automatic Data Processing from $310.00 to $336.00 and gave the company an “overweight” rating in a research report on Friday, October 30th. UBS Group lifted their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 22nd. Finally, Jefferies Financial Group boosted their price target on Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a research report on Wednesday, October 28th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and an average price target of $285.00.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) provides payroll processing and human resources technology and services to businesses of varying sizes. Its offerings include payroll administration, tax filing, benefits administration, workforce management, talent management, and human capital management software.

ADP also provides services such as compliance support and professional employer organization solutions, which help businesses manage employment responsibilities. Its products combine software with payroll and HR services to support organizations’ workforce operations.

Founded in 1949 as Automatic Payrolls, Inc, the company has grown from a payroll-processing business into a global provider of HR and workforce solutions.