Automatic Data Processing (NASDAQ:ADP) Sets New 12-Month High After Strong Earnings

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) reached a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $311.67 and last traded at $309.58, with a volume of 315990 shares traded. The stock had previously closed at $298.31.

The business services provider reported $2.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.30 by $0.05. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be issued a dividend of $1.54 per share. The ex-dividend date is Friday, March 14th. This represents a $6.16 annualized dividend and a yield of 2.05%. Automatic Data Processing’s dividend payout ratio is presently 65.74%.

Analyst Upgrades and Downgrades

ADP has been the subject of a number of analyst reports. Royal Bank of Canada boosted their price objective on Automatic Data Processing from $267.00 to $315.00 and gave the company a “sector perform” rating in a research report on Thursday, October 31st. Mizuho boosted their target price on Automatic Data Processing from $281.00 to $310.00 and gave the stock an “outperform” rating in a research report on Monday, November 4th. Jefferies Financial Group upped their price target on Automatic Data Processing from $260.00 to $290.00 and gave the company a “hold” rating in a research report on Tuesday, October 22nd. UBS Group upped their price target on Automatic Data Processing from $270.00 to $295.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 22nd. Finally, StockNews.com cut Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Monday. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $289.91.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Foskett sold 1,004 shares of the firm’s stock in a transaction dated Monday, January 6th. The stock was sold at an average price of $289.29, for a total value of $290,447.16. Following the transaction, the vice president now directly owns 5,958 shares of the company’s stock, valued at approximately $1,723,589.82. This trade represents a 14.42 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 362 shares of the firm’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $293.83, for a total value of $106,366.46. Following the sale, the vice president now directly owns 13,706 shares of the company’s stock, valued at approximately $4,027,233.98. This trade represents a 2.57 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 42,129 shares of company stock worth $12,604,872. Corporate insiders own 0.21% of the company’s stock.

Institutional Trading of Automatic Data Processing

Hedge funds and other institutional investors have recently made changes to their positions in the company. Avestar Capital LLC boosted its holdings in Automatic Data Processing by 16.7% in the 4th quarter. Avestar Capital LLC now owns 2,543 shares of the business services provider’s stock valued at $748,000 after purchasing an additional 363 shares in the last quarter. MGB Wealth Management LLC raised its position in Automatic Data Processing by 2.8% in the fourth quarter. MGB Wealth Management LLC now owns 3,573 shares of the business services provider’s stock valued at $1,046,000 after purchasing an additional 98 shares during the period. Hemington Wealth Management grew its stake in shares of Automatic Data Processing by 2.4% during the fourth quarter. Hemington Wealth Management now owns 1,738 shares of the business services provider’s stock valued at $508,000 after acquiring an additional 40 shares in the last quarter. Ingalls & Snyder LLC grew its stake in shares of Automatic Data Processing by 0.4% during the fourth quarter. Ingalls & Snyder LLC now owns 16,280 shares of the business services provider’s stock valued at $4,766,000 after acquiring an additional 69 shares in the last quarter. Finally, Warren Street Wealth Advisors LLC grew its stake in Automatic Data Processing by 4.4% in the fourth quarter. Warren Street Wealth Advisors LLC now owns 1,297 shares of the business services provider’s stock worth $380,000 after purchasing an additional 55 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Stock Up 0.8 %

The firm has a market capitalization of $122.47 billion, a price-to-earnings ratio of 32.08, a P/E/G ratio of 3.45 and a beta of 0.79. The stock has a 50 day moving average of $297.19 and a 200 day moving average of $283.65. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56.

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.