Automatic Data Processing, Inc. $ADP Stock: Palisade Asset Management LLC Decreases Stake

Palisade Asset Management LLC cut its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.2% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 62,705 shares of the business services provider’s stock after selling 2,075 shares during the period. Automatic Data Processing accounts for 1.5% of Palisade Asset Management LLC’s portfolio, making the stock its 19th largest holding. Palisade Asset Management LLC’s holdings in Automatic Data Processing were worth $16,182,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of ADP. BlackRock Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $8,097,229,000. Bank of America Corp DE bought a new position in Automatic Data Processing in the 2nd quarter worth $1,231,175,000. Deutsche Bank AG bought a new position in Automatic Data Processing in the 2nd quarter worth $994,937,000. Bank of New York Mellon Corp bought a new position in Automatic Data Processing in the 2nd quarter worth $725,513,000. Finally, Legal & General Group Plc bought a new position in Automatic Data Processing in the 2nd quarter worth $562,425,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on ADP shares. Royal Bank Of Canada reiterated a “sector perform” rating and set a $290.00 target price on shares of Automatic Data Processing in a research report on Thursday, October 29th. Guggenheim restated a “buy” rating and issued a $340.00 price target on shares of Automatic Data Processing in a research report on Thursday, October 29th. Citigroup raised their price objective on Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a research note on Thursday, October 29th. Weiss Ratings raised Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, September 22nd. Finally, Morgan Stanley lifted their price objective on Automatic Data Processing from $286.00 to $288.00 and gave the company an “equal weight” rating in a research report on Thursday, October 29th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing presently has an average rating of “Hold” and an average price target of $285.00.

Insider Activity

In related news, VP Jonathan Lehberger sold 770 shares of the firm’s stock in a transaction 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 completion of the transaction, the vice president directly owned 4,961 shares of the company’s stock, valued at approximately $1,490,036.35. This trade represents a 13.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael Bonarti sold 7,487 shares of the business’s stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $300.00, for a total transaction of $2,246,100.00. Following the completion of the sale, the vice president owned 81,849 shares in the company, valued at $24,554,700. This represents a 8.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 50,207 shares of company stock worth $14,522,300. 0.15% of the stock is owned by corporate insiders.

Key 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

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $303.35 on Friday. The business’s 50-day moving average is $279.18 and its 200 day moving average is $241.91. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.98. The company has a market capitalization of $119.75 billion, a P/E ratio of 26.89, a P/E/G ratio of 2.72 and a beta of 0.77. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, beating the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business had revenue of $5.49 billion during the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter last year, the business posted $2.49 EPS. The firm’s revenue for the quarter was up 6.1% compared to the same quarter last year. On average, equities research analysts forecast that Automatic Data Processing, Inc. will post 12.38 earnings per share for the current fiscal year.

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.