Automatic Data Processing, Inc. (NASDAQ:ADP) Stock Holdings Cut by American International Group Inc.

American International Group Inc. reduced its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 6.7% in the fourth quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 161,695 shares of the business services provider’s stock after selling 11,620 shares during the quarter. American International Group Inc.’s holdings in Automatic Data Processing were worth $37,670,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in ADP. Norges Bank bought a new stake in shares of Automatic Data Processing during the 4th quarter worth $308,321,000. International Assets Investment Management LLC boosted its stake in shares of Automatic Data Processing by 22,539.4% during the 4th quarter. International Assets Investment Management LLC now owns 934,326 shares of the business services provider’s stock worth $217,670,000 after acquiring an additional 930,199 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Automatic Data Processing by 40.7% during the 3rd quarter. Invesco Ltd. now owns 3,128,701 shares of the business services provider’s stock worth $752,703,000 after acquiring an additional 905,043 shares in the last quarter. Capital Research Global Investors boosted its stake in shares of Automatic Data Processing by 22.5% during the 4th quarter. Capital Research Global Investors now owns 3,543,317 shares of the business services provider’s stock worth $825,487,000 after acquiring an additional 649,791 shares in the last quarter. Finally, Envestnet Asset Management Inc. boosted its stake in shares of Automatic Data Processing by 65.5% during the 3rd quarter. Envestnet Asset Management Inc. now owns 1,402,511 shares of the business services provider’s stock worth $337,416,000 after acquiring an additional 555,184 shares in the last quarter. 80.03% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. StockNews.com raised Automatic Data Processing from a “hold” rating to a “buy” rating in a research note on Friday, May 31st. Mizuho increased their target price on Automatic Data Processing from $265.00 to $272.00 and gave the company a “buy” rating in a report on Monday, March 11th. Evercore ISI increased their target price on Automatic Data Processing from $227.00 to $235.00 and gave the company an “underperform” rating in a report on Tuesday, March 26th. Barclays increased their target price on Automatic Data Processing from $280.00 to $282.00 and gave the company an “overweight” rating in a report on Thursday, May 2nd. Finally, TD Cowen reduced their target price on Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating for the company in a report on Thursday, May 2nd. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and an average target price of $255.42.

Automatic Data Processing Stock Performance

ADP traded up $2.19 on Thursday, hitting $247.97. 1,613,317 shares of the stock traded hands, compared to its average volume of 1,675,107. Automatic Data Processing, Inc. has a 52 week low of $205.53 and a 52 week high of $256.84. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $101.49 billion, a PE ratio of 27.68, a P/E/G ratio of 2.70 and a beta of 0.78. The business has a fifty day moving average price of $245.85 and a two-hundred day moving average price of $242.23.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, May 1st. The business services provider reported $2.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.79 by $0.09. Automatic Data Processing had a return on equity of 93.09% and a net margin of 19.56%. The firm had revenue of $5.30 billion for the quarter, compared to analyst estimates of $5.22 billion. During the same period in the previous year, the company posted $2.52 earnings per share. The company’s quarterly revenue was up 7.6% compared to the same quarter last year. On average, research analysts predict that Automatic Data Processing, Inc. will post 9.17 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Stockholders of record on Friday, June 14th will be paid a $1.40 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $5.60 annualized dividend and a dividend yield of 2.26%. Automatic Data Processing’s dividend payout ratio is currently 62.50%.

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.