Automatic Data Processing, Inc. $ADP Shares Acquired by Ethic Inc.

Ethic Inc. grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.9% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 91,126 shares of the business services provider’s stock after buying an additional 3,432 shares during the quarter. Ethic Inc.’s holdings in Automatic Data Processing were worth $23,516,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the business. Kornitzer Capital Management Inc. KS acquired a new position in Automatic Data Processing during the third quarter valued at approximately $373,000. Verus Capital Partners LLC bought a new position in Automatic Data Processing in the third quarter valued at approximately $204,000. Parallel Advisors LLC grew its stake in Automatic Data Processing by 2.4% in the third quarter. Parallel Advisors LLC now owns 9,819 shares of the business services provider’s stock valued at $2,534,000 after purchasing an additional 229 shares in the last quarter. Plancorp LLC grew its stake in Automatic Data Processing by 6.0% in the third quarter. Plancorp LLC now owns 2,237 shares of the business services provider’s stock valued at $577,000 after purchasing an additional 127 shares in the last quarter. Finally, May Hill Capital LLC grew its stake in Automatic Data Processing by 10.2% in the third quarter. May Hill Capital LLC now owns 1,158 shares of the business services provider’s stock valued at $299,000 after purchasing an additional 107 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, CEO Maria Black sold 29,810 shares of the company’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the transaction, the chief executive officer directly owned 80,624 shares in the company, 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 hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Virginia Magliulo sold 2,927 shares of the stock in a transaction dated Friday, October 30th. The shares were sold at an average price of $293.70, for a total transaction of $859,659.90. Following the completion of the transaction, the vice president directly owned 14,865 shares in the company, valued at $4,365,850.50. The trade was a 16.45% decrease in their ownership of the stock. 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 90 days, insiders sold 50,207 shares of company stock valued at $14,522,300. Corporate insiders own 0.15% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Wells Fargo & Company increased their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Royal Bank Of Canada restated a “sector perform” rating and set a $290.00 target price on shares of Automatic Data Processing in a report on Thursday, October 29th. BMO Capital Markets upped their price target on shares of 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. UBS Group increased their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Finally, Citigroup increased their price target on shares of Automatic Data Processing from $287.00 to $295.00 and gave the company a “neutral” rating in a research note on Thursday, October 29th. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $285.00.

Automatic Data Processing News Roundup

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 Stock Performance

Shares of NASDAQ ADP opened at $303.35 on Friday. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98. 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. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.98. The stock has a 50 day moving average of $279.18 and a 200-day moving average of $241.91.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter in the prior year, the business earned $2.49 EPS. The firm’s revenue for the quarter was up 6.1% on a year-over-year basis. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

Automatic Data Processing 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.