Automatic Data Processing (NASDAQ:ADP) Shares Sold by Northwest Investment Counselors LLC

Northwest Investment Counselors LLC lowered its stake in shares of Automatic Data Processing (NASDAQ:ADP) by 0.7% in the fourth quarter, HoldingsChannel reports. The fund owned 21,470 shares of the business services provider’s stock after selling 156 shares during the quarter. Automatic Data Processing makes up about 1.3% of Northwest Investment Counselors LLC’s portfolio, making the stock its 18th largest position. Northwest Investment Counselors LLC’s holdings in Automatic Data Processing were worth $3,661,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently bought and sold shares of ADP. Horan Capital Advisors LLC. purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $31,000. Savior LLC purchased a new position in Automatic Data Processing in the 4th quarter worth approximately $43,000. Gradient Investments LLC boosted its holdings in Automatic Data Processing by 126.2% in the 3rd quarter. Gradient Investments LLC now owns 276 shares of the business services provider’s stock worth $45,000 after acquiring an additional 154 shares during the period. Penserra Capital Management LLC purchased a new position in Automatic Data Processing in the 3rd quarter worth approximately $48,000. Finally, Usca Ria LLC purchased a new position in Automatic Data Processing in the 3rd quarter worth approximately $52,000. 80.10% of the stock is owned by institutional investors.

Shares of ADP traded up $2.34 during trading on Tuesday, reaching $178.08. The company’s stock had a trading volume of 154,351 shares, compared to its average volume of 1,407,803. The company has a fifty day moving average of $171.55 and a two-hundred day moving average of $166.79. Automatic Data Processing has a twelve month low of $133.76 and a twelve month high of $179.89. The company has a market cap of $76.68 billion, a price-to-earnings ratio of 32.80, a P/E/G ratio of 2.21 and a beta of 0.86. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.19.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 30th. The business services provider reported $1.34 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.33 by $0.01. Automatic Data Processing had a return on equity of 46.94% and a net margin of 16.52%. The company had revenue of $3.50 billion for the quarter, compared to analyst estimates of $3.52 billion. During the same period in the prior year, the company posted $1.20 EPS. Automatic Data Processing’s quarterly revenue was up 5.6% on a year-over-year basis. As a group, equities analysts forecast that Automatic Data Processing will post 6.16 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 2.04%. The ex-dividend date of this dividend is Thursday, March 12th. Automatic Data Processing’s payout ratio is 66.79%.

Automatic Data Processing announced that its board has initiated a stock buyback plan on Tuesday, November 12th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 6.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.

A number of equities analysts have weighed in on the company. Wolfe Research cut Automatic Data Processing from an “outperform” rating to a “market perform” rating in a report on Thursday, October 31st. Morgan Stanley upped their price target on Automatic Data Processing from $174.00 to $180.00 and gave the stock an “equal weight” rating in a report on Thursday, January 23rd. Citigroup upped their price target on Automatic Data Processing from $170.00 to $185.00 and gave the stock a “neutral” rating in a report on Tuesday, January 14th. ValuEngine upgraded Automatic Data Processing from a “sell” rating to a “hold” rating in a report on Tuesday, December 3rd. Finally, Evercore ISI upgraded Automatic Data Processing from an “in-line” rating to an “outperform” rating and set a $212.00 price target for the company in a report on Wednesday, January 22nd. Eleven research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $185.70.

In related news, VP John Ayala sold 6,484 shares of the company’s stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $176.03, for a total transaction of $1,141,378.52. Following the sale, the vice president now directly owns 19,578 shares of the company’s stock, valued at approximately $3,446,315.34. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Carlos A. Rodriguez sold 48,571 shares of the company’s stock in a transaction that occurred on Wednesday, November 13th. The shares were sold at an average price of $168.51, for a total value of $8,184,699.21. Following the sale, the chief executive officer now directly owns 144,899 shares in the company, valued at $24,416,930.49. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 57,381 shares of company stock worth $9,722,333. 0.31% of the stock is currently owned by corporate insiders.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

Further Reading: Dividend Achievers

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Institutional Ownership by Quarter for Automatic Data Processing (NASDAQ:ADP)

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