Short Interest in Automatic Data Processing, Inc. (NASDAQ:ADP) Declines By 14.4%

Automatic Data Processing, Inc. (NASDAQ:ADPGet Rating) was the recipient of a significant drop in short interest during the month of December. As of December 30th, there was short interest totalling 5,360,000 shares, a drop of 14.4% from the December 15th total of 6,260,000 shares. Based on an average daily volume of 1,660,000 shares, the days-to-cover ratio is currently 3.2 days. Approximately 1.3% of the company’s shares are short sold.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Donald Weinstein sold 5,075 shares of the stock in a transaction dated Wednesday, January 11th. The stock was sold at an average price of $245.00, for a total value of $1,243,375.00. Following the completion of the transaction, the vice president now directly owns 32,950 shares in the company, valued at $8,072,750. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, insider Carlos A. Rodriguez sold 52,254 shares of the firm’s stock in a transaction dated Thursday, January 5th. The stock was sold at an average price of $234.15, for a total transaction of $12,235,274.10. Following the completion of the transaction, the insider now directly owns 44,481 shares in the company, valued at $10,415,226.15. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Donald Weinstein sold 5,075 shares of the firm’s stock in a transaction dated Wednesday, January 11th. The stock was sold at an average price of $245.00, for a total value of $1,243,375.00. Following the transaction, the vice president now owns 32,950 shares of the company’s stock, valued at $8,072,750. The disclosure for this sale can be found here. Over the last three months, insiders sold 106,557 shares of company stock worth $25,351,834. 0.33% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ADP. Calamos Wealth Management LLC bought a new stake in Automatic Data Processing during the third quarter worth $270,000. Mather Group LLC. raised its stake in shares of Automatic Data Processing by 4.2% in the second quarter. Mather Group LLC. now owns 63,019 shares of the business services provider’s stock valued at $13,236,000 after buying an additional 2,525 shares during the period. Bridgewater Associates LP raised its stake in shares of Automatic Data Processing by 11.7% in the second quarter. Bridgewater Associates LP now owns 87,181 shares of the business services provider’s stock valued at $18,311,000 after buying an additional 9,116 shares during the period. Great Valley Advisor Group Inc. raised its stake in shares of Automatic Data Processing by 23.2% in the second quarter. Great Valley Advisor Group Inc. now owns 2,607 shares of the business services provider’s stock valued at $548,000 after buying an additional 491 shares during the period. Finally, Avantax Advisory Services Inc. raised its stake in shares of Automatic Data Processing by 5.0% in the second quarter. Avantax Advisory Services Inc. now owns 9,715 shares of the business services provider’s stock valued at $2,041,000 after buying an additional 459 shares during the period. Institutional investors own 79.24% of the company’s stock.

Automatic Data Processing Trading Up 1.7 %

Shares of Automatic Data Processing stock opened at $237.17 on Friday. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.97 and a current ratio of 0.97. Automatic Data Processing has a 52 week low of $192.26 and a 52 week high of $274.92. The stock has a 50 day moving average price of $249.62 and a two-hundred day moving average price of $240.88. The stock has a market capitalization of $98.38 billion, a PE ratio of 32.80, a price-to-earnings-growth ratio of 2.52 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADPGet Rating) last announced its quarterly earnings data on Wednesday, October 26th. The business services provider reported $1.86 EPS for the quarter, beating analysts’ consensus estimates of $1.78 by $0.08. Automatic Data Processing had a return on equity of 80.50% and a net margin of 17.93%. The firm had revenue of $4.22 billion during the quarter, compared to analysts’ expectations of $4.16 billion. During the same quarter last year, the firm posted $1.65 earnings per share. The company’s revenue for the quarter was up 10.3% compared to the same quarter last year. As a group, equities analysts anticipate that Automatic Data Processing will post 8.12 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Saturday, April 1st. Stockholders of record on Friday, March 10th will be issued a $1.25 dividend. The ex-dividend date is Thursday, March 9th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.11%. Automatic Data Processing’s dividend payout ratio is presently 69.16%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Cowen raised their price objective on Automatic Data Processing to $237.00 in a research report on Thursday, October 27th. Wolfe Research raised their target price on Automatic Data Processing from $220.00 to $225.00 in a research note on Thursday, January 5th. Mizuho raised their target price on Automatic Data Processing from $276.00 to $285.00 and gave the stock a “buy” rating in a research note on Monday, December 12th. StockNews.com cut Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Thursday, November 17th. Finally, Morgan Stanley raised their target price on Automatic Data Processing from $245.00 to $250.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 27th. Five research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $244.45.

About Automatic Data Processing

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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.

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