Bank of New York Mellon Corp Cuts Stock Position in Automatic Data Processing, Inc. $ADP

Bank of New York Mellon Corp lessened its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 6.7% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 6,631,149 shares of the business services provider’s stock after selling 477,600 shares during the quarter. Bank of New York Mellon Corp owned 1.64% of Automatic Data Processing worth $1,946,242,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently made changes to their positions in the company. Laurel Wealth Advisors LLC grew its position in Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock valued at $1,439,845,000 after buying an additional 4,653,304 shares during the period. Norges Bank purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $696,841,000. Amundi raised its holdings in shares of Automatic Data Processing by 24.9% in the 2nd quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock worth $948,549,000 after purchasing an additional 619,829 shares during the period. JPMorgan Chase & Co. raised its holdings in shares of Automatic Data Processing by 26.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock worth $867,445,000 after purchasing an additional 591,800 shares during the period. Finally, Invesco Ltd. lifted its stake in Automatic Data Processing by 13.5% in the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock valued at $1,411,449,000 after purchasing an additional 544,968 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $254.51 on Wednesday. The company has a 50 day moving average of $258.54 and a 200 day moving average of $278.75. The stock has a market cap of $102.94 billion, a P/E ratio of 25.12 and a beta of 0.86. Automatic Data Processing, Inc. has a 12 month low of $247.18 and a 12 month high of $329.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.44 by $0.05. The business had revenue of $5.18 billion for the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The business’s revenue for the quarter was up 7.1% compared to the same quarter last year. During the same period in the prior year, the company posted $2.33 EPS. As a group, sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 67.13%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 806 shares of Automatic Data Processing stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the sale, the vice president owned 11,187 shares in the company, valued at approximately $2,962,317.60. This trade represents a 6.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,249 shares of company stock valued at $589,852 in the last three months. 0.20% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of recent research reports. Wells Fargo & Company decreased their target price on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. JPMorgan Chase & Co. decreased their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a report on Tuesday. They set an “overweight” rating and a $306.00 price objective on the stock. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, Citigroup assumed coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 target price for the company. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and an average target price of $306.38.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.