Automatic Data Processing (NASDAQ:ADP) Sets New 12-Month High – Time to Buy?

Automatic Data Processing, Inc. (NASDAQ:ADP)’s share price hit a new 52-week high on Wednesday . The company traded as high as $309.63 and last traded at $306.92, with a volume of 1120516 shares changing hands. The stock had previously closed at $307.97.

Wall Street Analysts Forecast Growth

ADP has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their price target on Automatic Data Processing from $250.00 to $285.00 and gave the company an “underweight” rating in a report on Tuesday, August 20th. Citigroup increased their target price on Automatic Data Processing from $260.00 to $295.00 and gave the company a “neutral” rating in a research report on Wednesday, September 25th. StockNews.com downgraded Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Thursday, September 19th. Jefferies Financial Group increased their target price on Automatic Data Processing from $260.00 to $290.00 and gave the company a “hold” rating in a research report on Tuesday, October 22nd. Finally, Bank of America increased their target price on Automatic Data Processing from $250.00 to $267.00 and gave the company a “neutral” rating in a research report on Thursday, August 1st. Two investment 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. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $289.91.

Automatic Data Processing Stock Performance

The firm has a market capitalization of $125.06 billion, a P/E ratio of 32.87, a P/E/G ratio of 3.55 and a beta of 0.79. The firm has a 50-day moving average price of $290.64 and a two-hundred day moving average price of $267.03. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.01 and a quick ratio of 1.01.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results 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. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. The business had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.77 billion. During the same period last year, the company earned $2.08 earnings per share. The business’s revenue for the quarter was up 7.1% compared to the same quarter last year. On average, analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 1st. Stockholders of record on Friday, December 13th will be paid a dividend of $1.54 per share. The ex-dividend date is Friday, December 13th. This represents a $6.16 annualized dividend and a dividend yield of 2.01%. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.40. Automatic Data Processing’s dividend payout ratio (DPR) is currently 59.77%.

Insider Activity

In other Automatic Data Processing news, VP Don Mcguire sold 3,179 shares of Automatic Data Processing stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $274.38, for a total value of $872,254.02. Following the transaction, the vice president now owns 41,696 shares in the company, valued at $11,440,548.48. The trade was a 7.08 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Maria Black sold 19,147 shares of Automatic Data Processing stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total value of $5,253,553.86. Following the completion of the transaction, the chief executive officer now owns 92,807 shares in the company, valued at $25,464,384.66. This trade represents a 17.10 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 70,504 shares of company stock worth $20,298,056. Company insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Assenagon Asset Management S.A. grew its stake in 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 purchasing an additional 264,466 shares during the last quarter. Plato Investment Management Ltd grew its stake in shares of Automatic Data Processing by 23.8% during 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 purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $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 worth $997,000 after acquiring an additional 4,084 shares during the last quarter. Finally, RIA Advisory Group LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $470,000. Hedge funds and other 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.