Insider Selling: Automatic Data Processing, Inc. (NASDAQ:ADP) VP Sells $7,164,724.32 in Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Michael A. Bonarti sold 26,442 shares of the business’s stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $270.96, for a total transaction of $7,164,724.32. Following the completion of the sale, the vice president now directly owns 88,426 shares of the company’s stock, valued at approximately $23,959,908.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Automatic Data Processing Stock Performance

ADP stock opened at $273.36 on Friday. The company has a 50-day simple moving average of $252.18 and a 200 day simple moving average of $248.63. The company has a market capitalization of $111.88 billion, a P/E ratio of 30.51, a PEG ratio of 2.72 and a beta of 0.78. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.66. Automatic Data Processing, Inc. has a fifty-two week low of $205.53 and a fifty-two week high of $276.77.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, July 31st. The business services provider reported $2.09 earnings per share for the quarter, topping analysts’ consensus estimates of $2.06 by $0.03. Automatic Data Processing had a net margin of 19.54% and a return on equity of 89.20%. The company had revenue of $4.80 billion during the quarter, compared to analyst estimates of $4.74 billion. During the same period in the prior year, the business posted $1.89 EPS. The business’s revenue for the quarter was up 7.2% compared to the same quarter last year. Sell-side analysts predict that Automatic Data Processing, Inc. will post 10.01 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 1st. Stockholders of record on Friday, September 13th will be given a dividend of $1.40 per share. This represents a $5.60 annualized dividend and a dividend yield of 2.05%. The ex-dividend date of this dividend is Friday, September 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 62.50%.

Analyst Upgrades and Downgrades

ADP has been the subject of several research analyst reports. Bank of America boosted their price objective on Automatic Data Processing from $250.00 to $267.00 and gave the company a “neutral” rating in a report on Thursday, August 1st. StockNews.com lowered Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Thursday. TD Cowen decreased their price objective on shares of Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating for the company in a report on Thursday, May 2nd. Barclays increased their target price on shares of Automatic Data Processing from $282.00 to $310.00 and gave the stock an “overweight” rating in a report on Monday, August 5th. Finally, Stifel Nicolaus lifted their price target on shares of Automatic Data Processing from $271.00 to $287.00 and gave the company a “hold” rating in a report on Thursday, August 1st. Two analysts have rated the stock with a sell rating, nine have given a hold rating and two have assigned a buy rating to the company. According to MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average target price of $265.36.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Clearbridge Investments LLC lifted its position in shares of Automatic Data Processing by 7.2% during the 2nd quarter. Clearbridge Investments LLC now owns 850,550 shares of the business services provider’s stock valued at $203,018,000 after acquiring an additional 56,767 shares during the last quarter. Ted Buchan & Co purchased a new stake in shares of Automatic Data Processing during the second quarter valued at $236,000. Advisory Alpha LLC boosted its position in shares of Automatic Data Processing by 19.1% in the 2nd quarter. Advisory Alpha LLC now owns 1,568 shares of the business services provider’s stock valued at $374,000 after purchasing an additional 252 shares during the period. IMS Capital Management increased its stake in Automatic Data Processing by 3.8% in the 2nd quarter. IMS Capital Management now owns 9,359 shares of the business services provider’s stock worth $2,476,000 after purchasing an additional 343 shares in the last quarter. Finally, Truist Financial Corp increased its stake in Automatic Data Processing by 0.7% in the 2nd quarter. Truist Financial Corp now owns 851,390 shares of the business services provider’s stock worth $203,218,000 after purchasing an additional 5,900 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.