On September 10, 2023, it was reported that Douglass Winthrop Advisors LLC has decreased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.4% during the first quarter. The reduction in stakes was disclosed through a recent filing with the Securities and Exchange Commission (SEC). As per the filing, the fund now holds 23,686 shares of Automatic Data Processing after selling off 1,100 shares during the quarter. The total worth of Douglass Winthrop Advisors LLC’s holdings in Automatic Data Processing stands at $5,273,000 based on its most recent SEC filing.
This news has garnered attention from various equities analysts who have subsequently issued reports on ADP shares. One such report came from Robert W. Baird which increased their target price on the stock from $235.00 to $270.00 based on their research report released on July 27th. Similarly, Jefferies Financial Group also raised their target price for Automatic Data Processing shares from $240.00 to $260.00 in their research note published on July 26th.
Royal Bank of Canada started covering shares of Automatic Data Processing and provided a “sector perform” rating along with a price target of $267.00 for the stock in a research note dated September 5th. On the other hand, StockNews.com downgraded Automatic Data Processing from a “buy” rating to a “hold” rating in one of its research notes released on August 25th.
Morgan Stanley also made an impact by increasing their price objective for Automatic Data Processing shares from $240.00 to $260.00 as announced in their report published on July 27th.
Currently, according to data obtained from Bloomberg, consensus analyst ratings for Automatic Data Processing are as follows: two analysts rate it as a sell, four analysts assign it a hold rating, while two analysts consider it a buy. The consensus rating for the stock is “Hold” with an average price target of $249.57.
Moving on to the trading activity, Automatic Data Processing’s stock traded down by $0.75 during the last trading session on Friday, reaching a price of $249.37 per share. The company experienced a trading volume of 1,191,044 shares, compared to its average volume of 1,227,624 shares.
Automatic Data Processing has displayed a 1-year low of $201.46 and a 1-year high of $274.92 as reflected in its stock performance. The company maintains a current ratio of 0.99 and a quick ratio of 0.99, indicating its liquidity position. Regarding financial strength, Automatic Data Processing carries a debt-to-equity ratio of 0.85.
Furthermore, the company’s 50-day simple moving average stands at $243.57 while its 200-day simple moving average is recorded at $225.93.
In terms of market capitalization, Automatic Data Processing currently amounts to $102.74 billion with a price-to-earnings ratio of 30.41 and a price-to-earnings-growth ratio of 2.34.Automatic Data Processing also has a beta coefficient of 0.81.
ADP’s Investor Base Shifts While Insiders Sell: A Look into the Future of the Business Services Provider
In the ever-changing landscape of the financial world, it is fascinating to observe the moves made by large investors in various companies. One such company that has recently seen changes in its investor base is Automatic Data Processing (ADP), a business services provider. According to recent reports, Moneta Group Investment Advisors LLC boosted its holdings in shares of ADP by an astounding 94,265.5% during the fourth quarter. This means that Moneta Group now owns over 6 million shares of ADP’s stock, valued at an impressive $1.6 billion.
Another prominent investor who acquired a new position in ADP’s shares is Norges Bank which added approximately $531 million worth of the company’s stock during the same period. Furthermore, Gateway Advisory LLC and Renaissance Technologies LLC both significantly increased their positions in ADP, demonstrating their confidence in the company’s future growth prospects.
Additionally, Amundi also increased its position in ADP by 39.8% during the fourth quarter, further solidifying its stake in the company. These large investors now collectively own a staggering 79.37% of ADP’s stock.
However, amidst these investments lies an interesting development regarding insider trading within ADP itself. Insider Carlos A. Rodriguez recently sold over 58,000 shares of the company’s stock at an average price of $250.42 per share. This transaction netted Rodriguez a substantial sum of $14 million while leaving him with approximately 44,000 remaining shares.
In addition to Rodriguez’s sale, another insider named Don Mcguire sold around 3,880 shares for nearly $1 million on September 5th. The total amount sold by insiders within the last three months equates to nearly $30 million worth of company stock.
Amidst all these developments within ADP and its investor base, several equities analysts have issued reports on the company’s performance and outlook for future growth. Notably, Robert W. Baird raised their target price for ADP from $235 to $270, while Jefferies Financial Group increased their target price from $240 to $260. These optimistic research reports point towards the potential for ADP’s continued success in the market.
However, not all analysts share the same sentiment. StockNews.com recently downgraded ADP from a “buy” rating to a “hold” rating, suggesting a more cautious stance on the stock’s potential performance. Similarly, Royal Bank of Canada assigned a “sector perform” rating with a price target of $267.
In terms of financial performance, ADP reported impressive earnings results for the last quarter. The company’s earnings per share (EPS) stood at $1.89, surpassing the consensus estimate of $1.83 by $0.06. ADP also reported a net margin of 18.94% and a return on equity of 107.15%. Moreover, the company’s revenue for the quarter reached $4.48 billion, beating analysts’ expectations.
Looking ahead, analysts expect that ADP will continue to perform well, projecting an EPS of 9.14 for the current fiscal year.
Furthermore, shareholders can look forward to receiving dividends from ADP as the company recently declared a quarterly dividend to be paid on October 1st. Shareholders who are recorded as owners of shares by September 8th will be entitled to a dividend of $1.25 per share.
In conclusion, Automatic Data Processing continues to attract significant attention from large investors who have made substantial additions to their positions in the company during recent months. With both optimistic and cautious ratings provided by equities analysts and robust financial performance reported by ADP itself, it remains intriguing to witness how these factors will influence the future trajectory of this business services provider in the market.