Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Down 20.0% in November

Automatic Data Processing, Inc. (NASDAQ:ADP) was the target of a large decrease in short interest in the month of November. As of November 15th, there was short interest totalling 5,210,000 shares, a decrease of 20.0% from the October 31st total of 6,510,000 shares. Based on an average daily trading volume, of 1,590,000 shares, the days-to-cover ratio is currently 3.3 days. Currently, 1.3% of the company’s stock are short sold.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $306.93 on Friday. The stock has a market cap of $125.06 billion, a price-to-earnings ratio of 32.76, a PEG ratio of 3.57 and a beta of 0.79. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56. The business has a 50-day simple moving average of $292.45 and a 200 day simple moving average of $267.99. Automatic Data Processing has a 52 week low of $227.12 and a 52 week high of $309.63.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 30th. The business services provider reported $2.33 earnings per share for the quarter, topping the consensus estimate of $2.21 by $0.12. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. The company had revenue of $4.83 billion for the quarter, compared to analysts’ expectations of $4.77 billion. During the same period in the prior year, the business earned $2.08 earnings per share. Automatic Data Processing’s revenue for the quarter was up 7.1% compared to the same quarter last year. On average, research analysts forecast that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 1st. Stockholders of record on Friday, December 13th will be issued a $1.54 dividend. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.40. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.01%. The ex-dividend date of this dividend is Friday, December 13th. Automatic Data Processing’s dividend payout ratio is presently 59.77%.

Insider Buying and Selling

In related news, VP Sreenivasa Kutam sold 38,975 shares of the firm’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total value of $11,692,500.00. Following the transaction, the vice president now owns 32,604 shares of the company’s stock, valued at approximately $9,781,200. This trade represents a 54.45 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Don Mcguire sold 3,179 shares of the stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $274.38, for a total value of $872,254.02. Following the completion of the sale, the vice president now directly owns 41,696 shares of the company’s stock, valued at approximately $11,440,548.48. This trade represents a 7.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 70,504 shares of company stock valued at $20,298,056. 0.21% of the stock is owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors have recently modified their holdings of the company. Franklin Resources Inc. lifted its stake in Automatic Data Processing by 8.4% in the third quarter. Franklin Resources Inc. now owns 667,068 shares of the business services provider’s stock worth $194,117,000 after purchasing an additional 51,828 shares during the last quarter. Wilmington Savings Fund Society FSB increased its holdings in shares of Automatic Data Processing by 220.4% in the third quarter. Wilmington Savings Fund Society FSB now owns 46,379 shares of the business services provider’s stock worth $12,834,000 after buying an additional 31,904 shares during the period. World Investment Advisors LLC lifted its stake in shares of Automatic Data Processing by 22.6% in the 3rd quarter. World Investment Advisors LLC now owns 7,466 shares of the business services provider’s stock valued at $2,066,000 after acquiring an additional 1,378 shares during the last quarter. Pine Valley Investments Ltd Liability Co boosted its holdings in Automatic Data Processing by 3.5% during the 3rd quarter. Pine Valley Investments Ltd Liability Co now owns 9,935 shares of the business services provider’s stock valued at $2,753,000 after acquiring an additional 337 shares during the period. Finally, Anchor Investment Management LLC grew its position in Automatic Data Processing by 7.0% during the 3rd quarter. Anchor Investment Management LLC now owns 15,384 shares of the business services provider’s stock worth $4,257,000 after acquiring an additional 1,001 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research firms have commented on ADP. TD Cowen lifted their target price on shares of Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a research report on Friday, November 1st. StockNews.com cut Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Thursday, September 19th. Barclays raised their target price on Automatic Data Processing from $310.00 to $325.00 and gave the company an “overweight” rating in a research report on Monday, November 4th. JPMorgan Chase & Co. boosted their price target on shares of Automatic Data Processing from $250.00 to $285.00 and gave the stock an “underweight” rating in a report on Tuesday, August 20th. Finally, Mizuho increased their price target on shares of Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a research report on Monday, November 4th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $289.91.

Automatic Data Processing Company Profile

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.