Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Down 19.9% in April

Automatic Data Processing, Inc. (NASDAQ:ADP) was the recipient of a large decline in short interest in April. As of April 15th, there was short interest totalling 3,830,000 shares, a decline of 19.9% from the March 31st total of 4,780,000 shares. Based on an average trading volume of 1,970,000 shares, the short-interest ratio is presently 1.9 days. Currently, 0.9% of the shares of the stock are short sold.

Shares of ADP opened at $193.97 on Wednesday. The firm has a market cap of $83.01 billion, a PE ratio of 33.68, a price-to-earnings-growth ratio of 2.39 and a beta of 0.70. Automatic Data Processing has a 52-week low of $127.31 and a 52-week high of $197.28. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.08 and a current ratio of 1.08. The business’s 50 day moving average price is $189.95 and its two-hundred day moving average price is $174.37.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Tuesday, April 27th. The business services provider reported $1.89 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.82 by $0.07. Automatic Data Processing had a return on equity of 46.13% and a net margin of 17.07%. The company had revenue of $4.10 billion during the quarter, compared to the consensus estimate of $4.08 billion. During the same period last year, the business posted $1.92 EPS. The firm’s revenue for the quarter was up 1.3% compared to the same quarter last year. Research analysts predict that Automatic Data Processing will post 5.63 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 1st. Investors of record on Friday, June 11th will be issued a $0.93 dividend. The ex-dividend date of this dividend is Thursday, June 10th. This represents a $3.72 dividend on an annualized basis and a dividend yield of 1.92%. Automatic Data Processing’s dividend payout ratio is presently 62.84%.

In related news, VP Stuart Sackman sold 576 shares of Automatic Data Processing stock in a transaction that occurred on Monday, March 15th. The shares were sold at an average price of $185.00, for a total value of $106,560.00. Following the transaction, the vice president now directly owns 23,221 shares of the company’s stock, valued at $4,295,885. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Deborah L. Dyson sold 500 shares of the business’s stock in a transaction that occurred on Monday, April 12th. The shares were sold at an average price of $188.72, for a total transaction of $94,360.00. Following the transaction, the vice president now owns 24,686 shares of the company’s stock, valued at $4,658,741.92. The disclosure for this sale can be found here. 0.34% of the stock is owned by insiders.

Institutional investors have recently modified their holdings of the company. Madrona Financial Services LLC bought a new stake in Automatic Data Processing during the first quarter worth $218,000. Bingham Osborn & Scarborough LLC increased its position in shares of Automatic Data Processing by 2.7% during the 1st quarter. Bingham Osborn & Scarborough LLC now owns 2,461 shares of the business services provider’s stock valued at $464,000 after purchasing an additional 65 shares during the last quarter. Envestnet Asset Management Inc. boosted its holdings in shares of Automatic Data Processing by 14.3% in the 1st quarter. Envestnet Asset Management Inc. now owns 710,169 shares of the business services provider’s stock worth $133,846,000 after buying an additional 88,981 shares during the last quarter. Institute for Wealth Management LLC. boosted its stake in Automatic Data Processing by 6.2% in the first quarter. Institute for Wealth Management LLC. now owns 2,586 shares of the business services provider’s stock valued at $487,000 after acquiring an additional 150 shares during the last quarter. Finally, Armor Investment Advisors LLC raised its holdings in shares of Automatic Data Processing by 2.7% in the 1st quarter. Armor Investment Advisors LLC now owns 5,384 shares of the business services provider’s stock worth $1,015,000 after purchasing an additional 141 shares during the period. 79.65% of the stock is owned by hedge funds and other institutional investors.

Several brokerages recently weighed in on ADP. Evercore ISI downgraded Automatic Data Processing from an “outperform” rating to an “underperform” rating and dropped their price objective for the stock from $197.00 to $143.00 in a research report on Tuesday, January 12th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell lifted their price target on shares of Automatic Data Processing from $190.00 to $212.00 and gave the company a “buy” rating in a report on Monday. Morgan Stanley increased their price objective on shares of Automatic Data Processing from $171.00 to $185.00 and gave the company an “equal weight” rating in a research note on Thursday, April 29th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Automatic Data Processing from $150.00 to $173.00 and gave the stock a “hold” rating in a research note on Thursday, January 28th. Finally, Mizuho started coverage on Automatic Data Processing in a research note on Wednesday, February 10th. They issued a “buy” rating and a $210.00 price target for the company. Four analysts have rated the stock with a sell rating, eight have given a hold rating and six have given a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $174.53.

About Automatic Data Processing

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

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