Automatic Data Processing, Inc. (NASDAQ:ADP) Sees Large Decline in Short Interest

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

Automatic Data Processing Stock Up 0.0 %

Shares of NASDAQ:ADP opened at $306.93 on Monday. The company’s fifty day moving average is $292.45 and its 200-day moving average is $268.30. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.01 and a current ratio of 1.01. Automatic Data Processing has a 52 week low of $227.12 and a 52 week high of $309.63. The company has a market capitalization of $125.06 billion, a PE ratio of 32.76, a P/E/G ratio of 3.57 and a beta of 0.79.

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

Automatic Data Processing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 1st. Investors of record on Friday, December 13th will be given a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, December 13th. This is a positive change 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 is 59.77%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on ADP shares. StockNews.com downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Thursday, September 19th. Citigroup raised their price target on shares of Automatic Data Processing from $260.00 to $295.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Barclays upped their price objective on shares of Automatic Data Processing from $310.00 to $325.00 and gave the company an “overweight” rating in a research report on Monday, November 4th. TD Cowen lifted their target price on Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a research report on Friday, November 1st. Finally, Mizuho upped their price target on Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a report on Monday, November 4th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus price target of $289.91.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Sreenivasa Kutam sold 38,975 shares of the business’s stock in a transaction on Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total transaction of $11,692,500.00. Following the completion of the transaction, the vice president now owns 32,604 shares of the company’s stock, valued at $9,781,200. The trade was a 54.45 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Carlos A. Rodriguez sold 9,203 shares of Automatic Data Processing stock in a transaction dated Friday, September 6th. The stock was sold at an average price of $269.45, for a total value of $2,479,748.35. Following the completion of the transaction, the director now owns 36,741 shares in the company, valued at $9,899,862.45. The trade was a 20.03 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 70,504 shares of company stock valued at $20,298,056. Insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several institutional investors have recently bought and sold shares of the business. Assenagon Asset Management S.A. raised its holdings in shares of Automatic Data Processing by 70.7% in the second quarter. Assenagon Asset Management S.A. now owns 638,507 shares of the business services provider’s stock valued at $152,405,000 after buying an additional 264,466 shares during the last quarter. Plato Investment Management Ltd raised its stake in shares of Automatic Data Processing by 23.8% in the second quarter. Plato Investment Management Ltd now owns 26,610 shares of the business services provider’s stock worth $6,352,000 after acquiring an additional 5,114 shares during the last quarter. Moloney Securities Asset Management LLC acquired a new position in shares of Automatic Data Processing during the third quarter worth approximately $209,000. ORG Partners LLC grew its stake in shares of Automatic Data Processing by 2,917.1% during the second quarter. ORG Partners LLC now owns 4,224 shares of the business services provider’s stock valued at $997,000 after purchasing an additional 4,084 shares during the last quarter. Finally, RIA Advisory Group LLC acquired a new stake in shares of Automatic Data Processing in the third quarter valued at approximately $470,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.