Automatic Data Processing (NASDAQ:ADP) VP Michael Bonarti Sells 6,812 Shares of Company Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Michael Bonarti sold 6,812 shares of the business’s stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $310.00, for a total value of $2,111,720.00. Following the sale, the vice president directly owned 81,849 shares in the company, valued at approximately $25,373,190. The trade was a 7.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Stock Down 1.2%

Automatic Data Processing stock opened at $303.35 on Friday. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.03 and a quick ratio of 1.05. The company’s 50-day moving average is $279.18 and its 200-day moving average is $241.91. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $310.98. The firm has a market capitalization of $119.75 billion, a PE ratio of 26.09, a P/E/G ratio of 2.68 and a beta of 0.77.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating analysts’ consensus estimates of $2.77 by $0.05. The firm had revenue of $5.49 billion for the quarter, compared to analysts’ expectations of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.49 EPS. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current year.

Institutional Trading of Automatic Data Processing

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cornerstone Advisory LLC raised its position in Automatic Data Processing by 1.2% in the third quarter. Cornerstone Advisory LLC now owns 3,401 shares of the business services provider’s stock worth $878,000 after acquiring an additional 40 shares during the period. Vista Capital Partners Inc. bought a new stake in shares of Automatic Data Processing during the 3rd quarter valued at $254,000. BankPlus Trust Department increased its holdings in shares of Automatic Data Processing by 4.3% in the 3rd quarter. BankPlus Trust Department now owns 13,635 shares of the business services provider’s stock worth $3,519,000 after buying an additional 557 shares during the last quarter. Moors & Cabot Inc. increased its stake in Automatic Data Processing by 3.8% in the 3rd quarter. Moors & Cabot Inc. now owns 4,979 shares of the business services provider’s stock worth $1,285,000 after buying an additional 184 shares during the period. Finally, Money Concepts Capital Corp grew its holdings in Automatic Data Processing by 1.0% in the third quarter. Money Concepts Capital Corp now owns 8,414 shares of the business services provider’s stock worth $2,171,000 after purchasing an additional 81 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on ADP shares. Morgan Stanley upped their target price on shares of Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 29th. Stifel Nicolaus upped 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. Wells Fargo & Company upped their price target on Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Jefferies Financial Group boosted their price objective on shares of Automatic Data Processing from $225.00 to $250.00 and gave the company an “underperform” rating in a report on Wednesday, October 28th. Finally, 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 report on Friday, October 30th. Three investment 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’s stock. According to data from MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and a consensus target price of $285.00.

Key Stories Impacting Automatic Data Processing

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

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.