Automatic Data Processing (NASDAQ:ADP) Hits New 1-Year High at $278.94

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price reached a new 52-week high on Tuesday . The stock traded as high as $278.94 and last traded at $278.63, with a volume of 559156 shares trading hands. The stock had previously closed at $275.59.

Analyst Upgrades and Downgrades

ADP has been the subject of several research analyst reports. Stifel Nicolaus boosted their target price on Automatic Data Processing from $271.00 to $287.00 and gave the stock a “hold” rating in a research note on Thursday, August 1st. Bank of America raised their target price on shares of Automatic Data Processing from $250.00 to $267.00 and gave the company a “neutral” rating in a research report on Thursday, August 1st. JPMorgan Chase & Co. upped their price target on shares of Automatic Data Processing from $250.00 to $285.00 and gave the stock an “underweight” rating in a report on Tuesday, August 20th. Royal Bank of Canada reissued a “sector perform” rating and set a $267.00 price objective on shares of Automatic Data Processing in a report on Thursday, August 1st. Finally, StockNews.com raised Automatic Data Processing from a “hold” rating to a “buy” rating in a report on Monday. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $265.36.

Automatic Data Processing Stock Performance

The company has a market capitalization of $113.88 billion, a price-to-earnings ratio of 30.76, a PEG ratio of 2.93 and a beta of 0.79. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.01 and a quick ratio of 1.01. The company’s 50-day moving average price is $257.18 and its two-hundred day moving average price is $249.83.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, July 31st. The business services provider reported $2.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.06 by $0.03. Automatic Data Processing had a return on equity of 89.20% and a net margin of 19.54%. The firm had revenue of $4.80 billion for the quarter, compared to analysts’ expectations of $4.74 billion. During the same period in the prior year, the business earned $1.89 EPS. The company’s revenue for the quarter was up 7.2% compared to the same quarter last year. On average, equities research analysts anticipate that Automatic Data Processing, Inc. will post 10.04 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Friday, September 13th will be issued a $1.40 dividend. The ex-dividend date is Friday, September 13th. This represents a $5.60 annualized dividend and a yield of 2.01%. Automatic Data Processing’s payout ratio is currently 62.50%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 846 shares of the business’s stock in a transaction on Friday, August 23rd. The shares were sold at an average price of $270.60, for a total transaction of $228,927.60. Following the completion of the sale, the vice president now owns 10,410 shares in the company, valued at approximately $2,816,946. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other Automatic Data Processing news, VP Don Mcguire sold 3,179 shares of the firm’s stock in a transaction on Tuesday, September 3rd. The stock was sold at an average price of $274.38, for a total transaction of $872,254.02. Following the transaction, the vice president now directly owns 41,696 shares in the company, valued at approximately $11,440,548.48. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP David Kwon sold 846 shares of the stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $270.60, for a total transaction of $228,927.60. Following the completion of the sale, the vice president now owns 10,410 shares of the company’s stock, valued at approximately $2,816,946. The disclosure for this sale can be found here. Over the last quarter, insiders sold 58,817 shares of company stock valued at $15,999,208. Company insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Kiely Wealth Advisory Group Inc. purchased a new position in Automatic Data Processing in the second quarter valued at about $27,000. Keener Financial Planning LLC lifted its stake in Automatic Data Processing by 230.3% in the first quarter. Keener Financial Planning LLC now owns 109 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 76 shares during the last quarter. Crewe Advisors LLC bought a new position in Automatic Data Processing during the first quarter valued at $33,000. Pathway Financial Advisers LLC purchased a new stake in Automatic Data Processing in the first quarter worth $36,000. Finally, Pineridge Advisors LLC bought a new stake in shares of Automatic Data Processing in the fourth quarter valued at $39,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.