Automatic Data Processing (NASDAQ:ADP) Sets New 52-Week High – What’s Next?

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) hit a new 52-week high on Thursday. The stock traded as high as $311.89 and last traded at $309.2070, with a volume of 86,786 shares changing hands. The stock had previously closed at $306.36.

Analyst Ratings Changes

ADP has been the subject of several recent research reports. Weiss Ratings upgraded Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, September 22nd. Royal Bank Of Canada restated a “sector perform” rating and issued a $290.00 price objective on shares of Automatic Data Processing in a research report on Thursday, October 29th. Morgan Stanley raised their price objective on shares of Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 29th. Cantor Fitzgerald lifted their target price on shares of Automatic Data Processing from $310.00 to $336.00 and gave the company an “overweight” rating in a report on Friday, October 30th. Finally, Wells Fargo & Company boosted their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $285.00.

Automatic Data Processing Trading Up 0.6%

The firm has a market capitalization of $121.64 billion, a price-to-earnings ratio of 27.37, a P/E/G ratio of 2.74 and a beta of 0.77. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.03 and a current ratio of 1.03. The company has a 50 day moving average price of $280.31 and a two-hundred day moving average price of $242.61.

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 (EPS) for the quarter, beating analysts’ consensus estimates of $2.77 by $0.05. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The firm had revenue of $5.49 billion for the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter last year, the company earned $2.49 EPS. The firm’s revenue for the quarter was up 6.1% compared to the same quarter last year. On average, research analysts forecast that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

Automatic Data Processing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 1st. Shareholders of record on Friday, December 11th will be issued a dividend of $1.90 per share. The ex-dividend date of this dividend is Friday, December 11th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.70. This represents a $7.60 annualized dividend and a yield of 2.5%. Automatic Data Processing’s payout ratio is 60.28%.

Insider Buying and Selling at Automatic Data Processing

In other news, CEO Maria Black sold 29,810 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the sale, the chief executive officer owned 80,624 shares of the company’s stock, valued at $22,648,087.84. The trade was a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael A. Bonarti sold 7,487 shares of the company’s stock in a transaction dated 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 transaction, the vice president owned 81,849 shares of the company’s stock, valued at approximately $24,554,700. This trade 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. Over the last quarter, insiders sold 50,207 shares of company stock valued at $14,522,300. Insiders own 0.15% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AMG National Trust Bank increased its stake in Automatic Data Processing by 0.3% during the 3rd quarter. AMG National Trust Bank now owns 11,660 shares of the business services provider’s stock worth $3,009,000 after buying an additional 35 shares in the last quarter. Thrive Wealth Management LLC raised its holdings in shares of Automatic Data Processing by 3.5% during the second quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider’s stock valued at $243,000 after acquiring an additional 37 shares during the last quarter. Aviance Capital Partners LLC raised its holdings in shares of Automatic Data Processing by 0.4% during the third quarter. Aviance Capital Partners LLC now owns 9,298 shares of the business services provider’s stock valued at $2,399,000 after acquiring an additional 37 shares during the last quarter. Tanager Wealth Management LLP lifted its position in shares of Automatic Data Processing by 4.1% in the third quarter. Tanager Wealth Management LLP now owns 971 shares of the business services provider’s stock valued at $251,000 after acquiring an additional 38 shares in the last quarter. Finally, AMI Investment Management Inc. lifted its position in shares of Automatic Data Processing by 3.6% in the third quarter. AMI Investment Management Inc. now owns 1,140 shares of the business services provider’s stock valued at $294,000 after acquiring an additional 40 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

About Automatic Data Processing

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.