Automatic Data Processing (NASDAQ:ADP) VP Jonathan Lehberger Sells 770 Shares of Company Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Jonathan Lehberger sold 770 shares of the firm’s stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $300.35, for a total transaction of $231,269.50. Following the sale, the vice president owned 4,961 shares of the company’s stock, valued at approximately $1,490,036.35. The trade was a 13.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $307.14 on Friday. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.98. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98. The business’s 50 day simple moving average is $278.80 and its 200 day simple moving average is $241.67. The company has a market cap of $121.25 billion, a price-to-earnings ratio of 27.23, a PEG ratio of 2.72 and a beta of 0.77.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.77 by $0.05. The business had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same period last year, the business posted $2.49 earnings per share. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 12.38 EPS for the current year.

Hedge Funds Weigh In On Automatic Data Processing

A number of large investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. bought a new position in shares of Automatic Data Processing in the 2nd quarter worth about $13,283,000. Royal Capital Wealth Management LLC purchased a new position in Automatic Data Processing during the 2nd quarter valued at about $1,226,000. Canada Pension Plan Investment Board purchased a new position in Automatic Data Processing during the 2nd quarter valued at about $152,706,000. Murphy Pohlad Asset Management LLC bought a new stake in Automatic Data Processing during the second quarter worth about $1,044,000. Finally, Fulton Bank N.A. boosted its stake in Automatic Data Processing by 192.0% during the second quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider’s stock worth $1,605,000 after acquiring an additional 4,711 shares in the last quarter. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing News Summary

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP’s October report showed private-sector employment rose by 86,000, above the 69,000 forecast, with hiring gains across industries. Solid employment activity may support demand for ADP’s payroll and HR services. CNBC report on October hiring
• Positive Sentiment: The company’s latest reported quarter also beat analyst estimates for earnings and revenue, with revenue up 6.1% year over year—an additional fundamental support for the shares.
• Neutral Sentiment: Vice President Jonathan S. Lehberger sold 770 shares for about $231,000. The transaction was made under a pre-arranged Rule 10b5-1 plan, which makes it a less clear signal about his outlook for ADP. SEC filing for Lehberger transaction
• Negative Sentiment: Another vice president, Michael Bonarti, sold shares worth about $2.25 million, also under a 10b5-1 plan. Though planned sales do not necessarily reflect a negative view, multiple insider transactions may weigh on sentiment. Report on Bonarti share sale
• Negative Sentiment: Recent valuation commentary points to a potential 13% gap between ADP’s market price and estimated fair value, while another analysis questions whether its cash flow justifies its valuation. These are estimates, not company guidance, but may limit upside if investors focus on price. ADP fair-value analysis ADP cash-flow valuation analysis

Analyst Ratings Changes

A number of equities research analysts recently issued reports on ADP shares. BMO Capital Markets boosted their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research note on Wednesday, July 29th. Citigroup increased their target price on shares of Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a research report on Thursday, October 29th. Jefferies Financial Group lifted their target price on shares of Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a research note on Wednesday, October 28th. Stifel Nicolaus lifted their target price on shares of Automatic Data Processing from $285.00 to $305.00 and gave the stock a “hold” rating in a research note on Thursday, October 29th. Finally, Royal Bank Of Canada reissued a “sector perform” rating and issued a $290.00 price target on shares of Automatic Data Processing in a research report on Thursday, October 29th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $285.00.

About Automatic Data Processing

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.