Automatic Data Processing (NASDAQ:ADP) Stock: Insider Michael Bonarti Sells 6,812 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Michael Bonarti sold 6,812 shares of the firm’s stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $310.00, for a total transaction of $2,111,720.00. Following the sale, the vice president owned 81,849 shares in the company, valued at $25,373,190. This trade represents a 7.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Stock Performance

Shares of ADP opened at $303.35 on Friday. The firm has a market cap of $119.75 billion, a P/E ratio of 26.89, a PEG ratio of 2.72 and a beta of 0.77. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $310.98. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03. The firm’s 50 day moving average price is $279.18 and its two-hundred day moving average price is $241.91.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The company had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same quarter in the prior year, the firm earned $2.49 earnings per share. The firm’s revenue was up 6.1% compared to the same quarter last year. On average, analysts forecast that Automatic Data Processing, Inc. will post 12.38 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Guggenheim reiterated a “buy” rating and set a $340.00 target price on shares of Automatic Data Processing in a report on Thursday, October 29th. 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 note on Thursday, October 29th. Citigroup boosted their price target on Automatic Data Processing from $287.00 to $295.00 and gave the company a “neutral” rating in a report on Thursday, October 29th. Morgan Stanley upped their price objective on Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 29th. Finally, Cantor Fitzgerald raised their price target on shares of Automatic Data Processing from $310.00 to $336.00 and gave the stock an “overweight” rating in a research note on Friday, October 30th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $285.00.

Automatic Data Processing News Roundup

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

• Positive Sentiment: ADP’s October employment report showed private employers added 86,000 jobs, above expectations of 69,000. Continued hiring could support demand for ADP’s payroll and human-resources services. October private-sector hiring report
• Neutral Sentiment: Three ADP vice presidents—Michael Bonarti, Virginia Magliulo and Jonathan Lehberger—reported share sales. Each transaction was made under a pre-arranged Rule 10b5-1 plan, so the sales are not necessarily a signal about their outlook for the company. SEC filing for Bonarti sale SEC filing for Magliulo sale SEC filing for Lehberger sale
• Negative Sentiment: Recent valuation commentary argues ADP may be priced above estimated fair value, including one analysis identifying a potential 13% gap. Such concerns could temper demand for the shares, particularly after a strong run-up. ADP fair-value analysis ADP cash-flow valuation analysis

Institutional Trading of Automatic Data Processing

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADP. MSH Capital Advisors LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth $245,000. Cornerstone Advisory LLC boosted its position in shares of Automatic Data Processing by 1.2% during the 3rd quarter. Cornerstone Advisory LLC now owns 3,401 shares of the business services provider’s stock worth $878,000 after acquiring an additional 40 shares in the last quarter. Vista Capital Partners Inc. bought a new position in shares of Automatic Data Processing in the 3rd quarter valued at $254,000. BankPlus Trust Department lifted its position in shares of Automatic Data Processing by 4.3% during the 3rd quarter. BankPlus Trust Department now owns 13,635 shares of the business services provider’s stock worth $3,519,000 after buying an additional 557 shares during the last quarter. Finally, Moors & Cabot Inc. boosted its stake in Automatic Data Processing by 3.8% in the third quarter. Moors & Cabot Inc. now owns 4,979 shares of the business services provider’s stock valued at $1,285,000 after buying an additional 184 shares in the last quarter. 80.03% of the stock is owned by institutional investors.

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) provides payroll processing and human resources technology and services to businesses of varying sizes. Its offerings include payroll administration, tax filing, benefits administration, workforce management, talent management, and human capital management software.

ADP also provides services such as compliance support and professional employer organization solutions, which help businesses manage employment responsibilities. Its products combine software with payroll and HR services to support organizations’ workforce operations.

Founded in 1949 as Automatic Payrolls, Inc, the company has grown from a payroll-processing business into a global provider of HR and workforce solutions.