Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Update

Automatic Data Processing, Inc. (NASDAQ:ADP) was the recipient of a large decrease in short interest in November. As of November 15th, there was short interest totalling 5,210,000 shares, a decrease of 20.0% from the October 31st total of 6,510,000 shares. Approximately 1.3% of the company’s stock are sold short. Based on an average trading volume of 1,590,000 shares, the short-interest ratio is presently 3.3 days.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $306.93 on Friday. The company has a market capitalization of $125.06 billion, a PE ratio of 32.76, a price-to-earnings-growth ratio of 3.57 and a beta of 0.79. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.01 and a current ratio of 1.01. The business’s fifty day moving average is $292.45 and its 200 day moving average is $268.15. Automatic Data Processing has a fifty-two week low of $227.12 and a fifty-two week high of $309.63.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 30th. The business services provider reported $2.33 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.12. The company had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.77 billion. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. Automatic Data Processing’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.08 earnings per share. Sell-side analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th will be issued a dividend of $1.54 per share. The ex-dividend date is Friday, December 13th. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.40. This represents a $6.16 dividend on an annualized basis and a yield of 2.01%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.74%.

Analyst Upgrades and Downgrades

ADP has been the subject of a number of research analyst reports. Royal Bank of Canada lifted their target price on Automatic Data Processing from $267.00 to $315.00 and gave the stock a “sector perform” rating in a report on Thursday, October 31st. Jefferies Financial Group lifted their target price on Automatic Data Processing from $260.00 to $290.00 and gave the stock a “hold” rating in a report on Tuesday, October 22nd. Mizuho lifted their target price on Automatic Data Processing from $281.00 to $310.00 and gave the stock an “outperform” rating in a report on Monday, November 4th. JPMorgan Chase & Co. raised their price target on Automatic Data Processing from $250.00 to $285.00 and gave the stock an “underweight” rating in a research note on Tuesday, August 20th. Finally, TD Cowen raised their price target on Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a research note on Friday, November 1st. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and an average price target of $289.91.

Insider Transactions at Automatic Data Processing

In related news, Director Carlos A. Rodriguez sold 9,203 shares of the firm’s stock in a transaction that occurred on Friday, September 6th. The stock was sold at an average price of $269.45, for a total transaction of $2,479,748.35. Following the completion of the transaction, the director now owns 36,741 shares of the company’s stock, valued at $9,899,862.45. This trade represents a 20.03 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Don Mcguire sold 3,179 shares of the firm’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total value of $872,254.02. Following the transaction, the vice president now directly owns 41,696 shares of the company’s stock, valued at approximately $11,440,548.48. This trade represents a 7.08 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 70,504 shares of company stock valued at $20,298,056. Corporate insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently bought and sold shares of the business. Itau Unibanco Holding S.A. bought a new stake in shares of Automatic Data Processing in the third quarter worth about $26,000. Kiely Wealth Advisory Group Inc. bought a new stake in Automatic Data Processing during the second quarter worth approximately $27,000. Dunhill Financial LLC increased its stake in Automatic Data Processing by 346.5% during the third quarter. Dunhill Financial LLC now owns 106 shares of the business services provider’s stock worth $29,000 after acquiring an additional 149 shares during the last quarter. Hexagon Capital Partners LLC increased its stake in Automatic Data Processing by 78.5% during the third quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider’s stock worth $32,000 after acquiring an additional 51 shares during the last quarter. Finally, Capital Performance Advisors LLP bought a new stake in Automatic Data Processing during the third quarter worth approximately $35,000. 80.03% of the stock is owned by institutional investors.

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.