Automatic Data Processing (NASDAQ:ADP) Stock: Insider Jonathan Lehberger Sells 770 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Jonathan Lehberger sold 770 shares of Automatic Data Processing 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 owned 4,961 shares in the company, valued at $1,490,036.35. This represents a 13.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Trading Down 1.2%

NASDAQ ADP opened at $303.35 on Friday. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $310.98. The company’s 50 day moving average price is $279.18 and its 200 day moving average price is $241.91. The firm has a market capitalization of $119.75 billion, a price-to-earnings ratio of 26.09, a PEG ratio of 2.68 and a beta of 0.77. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping 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 company had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same period in the previous year, the company posted $2.49 EPS. The firm’s revenue for the quarter was up 6.1% compared to the same quarter last year. On average, sell-side analysts predict that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

More 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

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. BMO Capital Markets raised their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 29th. Wells Fargo & Company increased their target price on 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. Morgan Stanley upped their target price 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. Guggenheim reiterated a “buy” rating and issued a $340.00 price objective on shares of Automatic Data Processing in a research note on Thursday, October 29th. Finally, Cantor Fitzgerald upped their price target on Automatic Data Processing from $310.00 to $336.00 and gave the company an “overweight” rating in a research 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 assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $285.00.

Institutional Investors Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Automatic Data Processing during the second quarter valued at about $8,097,229,000. Bank of America Corp DE acquired a new position in shares of Automatic Data Processing in the second quarter worth $1,231,175,000. Deutsche Bank AG bought a new stake in shares of Automatic Data Processing during the second quarter worth approximately $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Automatic Data Processing by 3.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider’s stock valued at $952,112,000 after purchasing an additional 129,376 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Automatic Data Processing in the 2nd quarter valued at about $725,513,000. 80.03% of the stock is owned by 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.

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.