Automatic Data Processing (ADP) Hits New 52-Week High After Dividend Announcement

Shares of Automatic Data Processing (NASDAQ:ADP) hit a new 52-week high on Wednesday following a dividend announcement from the company. The company traded as high as $121.98 and last traded at $121.79, with a volume of 1149347 shares traded. The stock had previously closed at $119.39.

The newly announced dividend which will be paid on Sunday, April 1st. Stockholders of record on Friday, March 9th will be issued a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 2.07%. Automatic Data Processing’s payout ratio is presently 63.96%.

ADP has been the topic of several research reports. BidaskClub raised Automatic Data Processing from a “hold” rating to a “buy” rating in a research note on Thursday, September 28th. Zacks Investment Research raised Automatic Data Processing from a “sell” rating to a “hold” rating in a research note on Monday, October 2nd. Stifel Nicolaus reaffirmed a “hold” rating and set a $108.00 price target on shares of Automatic Data Processing in a research note on Wednesday, October 4th. Bank of America upped their price target on Automatic Data Processing from $111.00 to $114.00 and gave the company a “neutral” rating in a research note on Friday, October 13th. Finally, Barclays upped their price target on Automatic Data Processing from $105.00 to $115.00 and gave the company an “equal weight” rating in a research note on Thursday, October 26th. One analyst has rated the stock with a sell rating, eleven have given a hold rating and five have assigned a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $115.21.

The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.10 and a current ratio of 1.10. The stock has a market cap of $54,060.00, a P/E ratio of 30.95, a PEG ratio of 2.93 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Thursday, November 2nd. The business services provider reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.85 by $0.06. Automatic Data Processing had a return on equity of 42.34% and a net margin of 14.08%. The firm had revenue of $3.08 billion for the quarter, compared to analyst estimates of $3.06 billion. During the same quarter in the prior year, the firm posted $0.86 earnings per share. The company’s quarterly revenue was up 5.6% on a year-over-year basis. analysts expect that Automatic Data Processing will post 3.91 EPS for the current year.

In other news, Director John P. Jones III sold 5,688 shares of the firm’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $116.03, for a total transaction of $659,978.64. Following the sale, the director now owns 53,956 shares of the company’s stock, valued at $6,260,514.68. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Carlos A. Rodriguez sold 95,756 shares of the firm’s stock in a transaction dated Thursday, January 4th. The stock was sold at an average price of $118.09, for a total value of $11,307,826.04. Following the sale, the chief executive officer now directly owns 124,722 shares in the company, valued at approximately $14,728,420.98. The disclosure for this sale can be found here. Insiders sold 115,505 shares of company stock worth $13,612,788 in the last three months. Insiders own 0.25% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADP. Hills Bank & Trust Co. grew its holdings in shares of Automatic Data Processing by 87.3% during the second quarter. Hills Bank & Trust Co. now owns 10,300 shares of the business services provider’s stock worth $1,055,000 after buying an additional 4,800 shares in the last quarter. NEXT Financial Group Inc grew its holdings in shares of Automatic Data Processing by 8.4% during the second quarter. NEXT Financial Group Inc now owns 5,554 shares of the business services provider’s stock worth $569,000 after buying an additional 430 shares in the last quarter. Trust Co. of Vermont grew its holdings in shares of Automatic Data Processing by 1.0% during the second quarter. Trust Co. of Vermont now owns 69,360 shares of the business services provider’s stock worth $7,107,000 after buying an additional 711 shares in the last quarter. Creative Planning grew its holdings in shares of Automatic Data Processing by 5.2% during the second quarter. Creative Planning now owns 43,077 shares of the business services provider’s stock worth $4,414,000 after buying an additional 2,125 shares in the last quarter. Finally, State of Alaska Department of Revenue grew its holdings in shares of Automatic Data Processing by 1.4% during the second quarter. State of Alaska Department of Revenue now owns 32,301 shares of the business services provider’s stock worth $3,309,000 after buying an additional 450 shares in the last quarter. 78.68% of the stock is currently owned by institutional investors.

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About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services.

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