Cullinan Associates Inc. raised its stake in Automatic Data Processing (NASDAQ:ADP) by 111.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 35,603 shares of the business services provider’s stock after buying an additional 18,756 shares during the period. Cullinan Associates Inc.’s holdings in Automatic Data Processing were worth $6,070,000 at the end of the most recent reporting period.
Several other hedge funds also recently bought and sold shares of ADP. Nuveen Asset Management LLC boosted its position in shares of Automatic Data Processing by 40,836.2% in the 2nd quarter. Nuveen Asset Management LLC now owns 4,719,538 shares of the business services provider’s stock worth $780,281,000 after buying an additional 4,708,009 shares in the last quarter. Vanguard Group Inc. grew its stake in Automatic Data Processing by 1.7% in the 2nd quarter. Vanguard Group Inc. now owns 38,214,507 shares of the business services provider’s stock valued at $6,318,005,000 after acquiring an additional 644,178 shares during the last quarter. Eagle Asset Management Inc. increased its holdings in Automatic Data Processing by 222.9% during the 3rd quarter. Eagle Asset Management Inc. now owns 807,822 shares of the business services provider’s stock valued at $130,398,000 after acquiring an additional 557,645 shares in the last quarter. Morgan Stanley increased its holdings in Automatic Data Processing by 6.5% during the 2nd quarter. Morgan Stanley now owns 8,414,928 shares of the business services provider’s stock valued at $1,391,241,000 after acquiring an additional 516,484 shares in the last quarter. Finally, BlackRock Inc. increased its holdings in Automatic Data Processing by 1.2% during the 2nd quarter. BlackRock Inc. now owns 30,955,650 shares of the business services provider’s stock valued at $5,117,899,000 after acquiring an additional 368,108 shares in the last quarter. Institutional investors own 80.05% of the company’s stock.
NASDAQ:ADP traded up $1.58 on Wednesday, reaching $172.81. The stock had a trading volume of 2,096,212 shares, compared to its average volume of 1,401,271. The company has a market cap of $74.03 billion, a price-to-earnings ratio of 31.71, a P/E/G ratio of 2.14 and a beta of 0.86. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.01 and a quick ratio of 1.01. The firm’s fifty day moving average is $169.85 and its two-hundred day moving average is $166.00. Automatic Data Processing has a 12-month low of $131.84 and a 12-month high of $174.50.
Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 30th. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.33 by $0.01. The company had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. Automatic Data Processing had a net margin of 16.52% and a return on equity of 46.94%. The firm’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period last year, the company earned $1.20 EPS. As a group, research analysts forecast that Automatic Data Processing will post 6.16 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 2.11%. Automatic Data Processing’s payout ratio is 66.79%.
Automatic Data Processing announced that its Board of Directors has initiated a share repurchase program on Tuesday, November 12th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the business services provider to purchase up to 6.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.
Several brokerages have issued reports on ADP. BidaskClub downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Thursday, December 5th. Credit Suisse Group reiterated a “buy” rating and issued a $185.00 price target on shares of Automatic Data Processing in a research report on Monday, November 4th. Wolfe Research cut shares of Automatic Data Processing from an “outperform” rating to a “market perform” rating in a research note on Thursday, October 31st. Citigroup lifted their price objective on Automatic Data Processing from $170.00 to $185.00 and gave the stock a “neutral” rating in a research report on Tuesday. Finally, ValuEngine raised Automatic Data Processing from a “sell” rating to a “hold” rating in a research note on Tuesday, December 3rd. Eleven analysts have rated the stock with a hold rating and four have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $182.11.
In related news, VP Donald Weinstein sold 2,000 shares of the company’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $170.08, for a total value of $340,160.00. Following the completion of the transaction, the vice president now directly owns 25,710 shares in the company, valued at $4,372,756.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Carlos A. Rodriguez sold 48,571 shares of the stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $168.51, for a total value of $8,184,699.21. Following the transaction, the chief executive officer now owns 144,899 shares in the company, valued at $24,416,930.49. The disclosure for this sale can be found here. Corporate insiders own 0.31% of the company’s stock.
Automatic Data Processing 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.
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