Automatic Data Processing (NASDAQ:ADP) Sets New 52-Week High on Strong Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $311.67 and last traded at $309.58, with a volume of 315990 shares changing hands. The stock had previously closed at $298.31.

The business services provider reported $2.35 earnings per share for the quarter, topping analysts' consensus estimates of $2.30 by $0.05. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Stockholders of record on Friday, March 14th will be given a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a dividend yield of 2.03%. The ex-dividend date is Friday, March 14th. Automatic Data Processing's dividend payout ratio is presently 65.74%.

Analyst Upgrades and Downgrades

ADP has been the subject of several recent research reports. Royal Bank of Canada reissued a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a research report on Thursday. TD Cowen raised their price target on Automatic Data Processing from $276.00 to $285.00 and gave the company a "hold" rating in a report on Friday, November 1st. StockNews.com downgraded Automatic Data Processing from a "buy" rating to a "hold" rating in a report on Monday. Mizuho raised their price target on Automatic Data Processing from $281.00 to $310.00 and gave the company an "outperform" rating in a report on Monday, November 4th. Finally, Barclays lifted their price objective on Automatic Data Processing from $310.00 to $325.00 and gave the stock an "overweight" rating in a report on Monday, November 4th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $291.27.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Foskett sold 1,067 shares of the company's stock in a transaction dated Monday, January 13th. The stock was sold at an average price of $286.15, for a total transaction of $305,322.05. Following the transaction, the vice president now directly owns 6,140 shares of the company's stock, valued at $1,756,961. This represents a 14.81 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Maria Black sold 721 shares of the stock in a transaction dated Friday, January 3rd. The shares were sold at an average price of $291.59, for a total value of $210,236.39. Following the completion of the transaction, the chief executive officer now directly owns 68,856 shares in the company, valued at $20,077,721.04. This represents a 1.04 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 42,129 shares of company stock valued at $12,604,872 in the last quarter. 0.21% of the stock is owned by insiders.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds have recently bought and sold shares of the business. Moloney Securities Asset Management LLC purchased a new position in Automatic Data Processing during the third quarter worth approximately $209,000. Nomura Asset Management Co. Ltd. lifted its position in Automatic Data Processing by 5.8% during the third quarter. Nomura Asset Management Co. Ltd. now owns 280,961 shares of the business services provider's stock worth $77,750,000 after buying an additional 15,340 shares in the last quarter. RIA Advisory Group LLC purchased a new position in Automatic Data Processing during the third quarter worth approximately $470,000. Dash Acquisitions Inc. lifted its position in Automatic Data Processing by 5.6% during the third quarter. Dash Acquisitions Inc. now owns 52,329 shares of the business services provider's stock worth $15,069,000 after buying an additional 2,781 shares in the last quarter. Finally, DRW Securities LLC purchased a new position in Automatic Data Processing during the third quarter worth approximately $951,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

The stock has a 50-day moving average of $297.23 and a 200 day moving average of $283.77. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56. The stock has a market cap of $123.57 billion, a PE ratio of 32.37, a P/E/G ratio of 3.45 and a beta of 0.79.

About Automatic Data Processing

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.