Automatic Data Processing, Inc. (NASDAQ:ADP) Sees Large Increase in Short Interest

Automatic Data Processing, Inc. (NASDAQ:ADP) was the recipient of a significant growth in short interest in June. As of June 15th, there was short interest totalling 4,510,000 shares, a growth of 11.4% from the May 31st total of 4,050,000 shares. Approximately 1.1% of the shares of the company are sold short. Based on an average daily volume of 1,420,000 shares, the short-interest ratio is currently 3.2 days.

Analyst Ratings Changes

ADP has been the subject of several recent analyst reports. StockNews.com raised Automatic Data Processing from a “hold” rating to a “buy” rating in a report on Tuesday, June 18th. JPMorgan Chase & Co. decreased their target price on shares of Automatic Data Processing from $254.00 to $250.00 and set an “underweight” rating on the stock in a research report on Thursday, May 2nd. Mizuho upped their price target on shares of Automatic Data Processing from $265.00 to $272.00 and gave the stock a “buy” rating in a research note on Monday, March 11th. TD Cowen reduced their price objective on shares of Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating for the company in a research note on Thursday, May 2nd. Finally, Barclays upped their target price on shares of Automatic Data Processing from $280.00 to $282.00 and gave the stock an “overweight” rating in a research report on Thursday, May 2nd. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and three have given a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $255.42.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $238.69 on Monday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.01 and a current ratio of 1.01. The firm has a market capitalization of $97.69 billion, a price-to-earnings ratio of 26.64, a price-to-earnings-growth ratio of 2.62 and a beta of 0.78. Automatic Data Processing has a one year low of $205.53 and a one year high of $256.84. The company has a 50 day moving average price of $245.79 and a 200 day moving average price of $243.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, May 1st. The business services provider reported $2.88 EPS for the quarter, topping analysts’ consensus estimates of $2.79 by $0.09. Automatic Data Processing had a return on equity of 93.09% and a net margin of 19.56%. The business had revenue of $5.30 billion during the quarter, compared to the consensus estimate of $5.22 billion. During the same period in the prior year, the firm posted $2.52 EPS. The business’s revenue for the quarter was up 7.6% on a year-over-year basis. Sell-side analysts anticipate that Automatic Data Processing will post 9.16 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Friday, June 14th will be paid a dividend of $1.40 per share. The ex-dividend date of this dividend is Friday, June 14th. This represents a $5.60 annualized dividend and a yield of 2.35%. Automatic Data Processing’s dividend payout ratio is currently 62.50%.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds have recently made changes to their positions in the business. Keener Financial Planning LLC raised its position in Automatic Data Processing by 230.3% in the first quarter. Keener Financial Planning LLC now owns 109 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 76 shares during the period. Crewe Advisors LLC purchased a new stake in shares of Automatic Data Processing during the 1st quarter valued at about $33,000. Fortitude Family Office LLC purchased a new position in Automatic Data Processing in the 4th quarter worth approximately $35,000. Pathway Financial Advisers LLC acquired a new stake in Automatic Data Processing in the first quarter valued at approximately $36,000. Finally, Pineridge Advisors LLC purchased a new stake in shares of Automatic Data Processing during the fourth quarter valued at approximately $39,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

About Automatic Data Processing

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