Automatic Data Processing, Inc. (NASDAQ:ADP) Shares Sold by Covenant Asset Management LLC

Covenant Asset Management LLC lowered its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.3% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 18,477 shares of the business services provider’s stock after selling 624 shares during the quarter. Automatic Data Processing comprises approximately 0.8% of Covenant Asset Management LLC’s investment portfolio, making the stock its 22nd largest holding. Covenant Asset Management LLC’s holdings in Automatic Data Processing were worth $5,113,000 as of its most recent SEC filing.

Several other hedge funds have also recently modified their holdings of ADP. Kiely Wealth Advisory Group Inc. acquired a new position in Automatic Data Processing in the 2nd quarter worth approximately $27,000. Hexagon Capital Partners LLC grew its stake in shares of Automatic Data Processing by 78.5% during the 3rd quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider’s stock worth $32,000 after purchasing an additional 51 shares during the period. Crewe Advisors LLC acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $33,000. Capital Performance Advisors LLP acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $35,000. Finally, Pathway Financial Advisers LLC acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $36,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Stock Up 2.0 %

Shares of NASDAQ:ADP opened at $304.69 on Friday. The business has a 50-day moving average price of $288.99 and a 200 day moving average price of $265.44. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $124.15 billion, a price-to-earnings ratio of 32.52, a PEG ratio of 3.46 and a beta of 0.79. Automatic Data Processing, Inc. has a 12-month low of $227.12 and a 12-month high of $309.37.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 30th. The business services provider reported $2.33 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.12. The company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.77 billion. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. Automatic Data Processing’s revenue was up 7.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.08 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 9.94 EPS for the current year.

Automatic Data Processing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 1st. Stockholders of record on Friday, December 13th will be paid a $1.54 dividend. This represents a $6.16 annualized dividend and a dividend yield of 2.02%. The ex-dividend date is Friday, December 13th. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.40. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.74%.

Insider Activity

In related news, Director Carlos A. Rodriguez sold 9,203 shares of the business’s stock in a transaction that occurred on Friday, September 6th. The stock was sold at an average price of $269.45, for a total transaction of $2,479,748.35. Following the completion of the sale, the director now owns 36,741 shares in the company, valued at $9,899,862.45. The trade was a 20.03 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Maria Black sold 19,147 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $274.38, for a total value of $5,253,553.86. Following the sale, the chief executive officer now owns 92,807 shares of the company’s stock, valued at approximately $25,464,384.66. The trade was a 17.10 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 96,946 shares of company stock worth $27,462,781. 0.21% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the company. UBS Group increased their target price on Automatic Data Processing from $270.00 to $295.00 and gave the company a “neutral” rating in a research report on Tuesday, October 22nd. JPMorgan Chase & Co. increased their target price on Automatic Data Processing from $250.00 to $285.00 and gave the company an “underweight” rating in a research report on Tuesday, August 20th. Bank of America increased their target price on Automatic Data Processing from $250.00 to $267.00 and gave the company a “neutral” rating in a research report on Thursday, August 1st. TD Cowen increased their target price on Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a research report on Friday, November 1st. Finally, Mizuho increased their target price on Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a research report on Monday, November 4th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $289.91.

Automatic Data Processing Profile

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.