Jensen Investment Management Inc. Decreases Position in Automatic Data Processing, Inc. (NASDAQ:ADP)

Jensen Investment Management Inc. reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 5.9% during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,854,410 shares of the business services provider’s stock after selling 117,265 shares during the period. Automatic Data Processing accounts for about 3.6% of Jensen Investment Management Inc.’s holdings, making the stock its 12th biggest position. Jensen Investment Management Inc. owned 0.45% of Automatic Data Processing worth $442,629,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Keener Financial Planning LLC boosted its position in shares of Automatic Data Processing by 230.3% in the 1st quarter. Keener Financial Planning LLC now owns 109 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 76 shares during the period. Crewe Advisors LLC acquired a new stake in shares of Automatic Data Processing in the first quarter valued at approximately $33,000. Pathway Financial Advisers LLC purchased a new position in shares of Automatic Data Processing during the first quarter worth approximately $36,000. New Millennium Group LLC acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $40,000. Finally, Pineridge Advisors LLC acquired a new position in shares of Automatic Data Processing in the 4th quarter valued at $39,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Transactions at Automatic Data Processing

In related news, VP David Kwon sold 846 shares of the firm’s stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $270.60, for a total value of $228,927.60. Following the completion of the transaction, the vice president now directly owns 10,410 shares of the company’s stock, valued at approximately $2,816,946. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, VP Michael A. Bonarti sold 26,442 shares of the stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $270.96, for a total value of $7,164,724.32. Following the sale, the vice president now directly owns 88,426 shares in the company, valued at $23,959,908.96. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP David Kwon sold 846 shares of Automatic Data Processing stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $270.60, for a total value of $228,927.60. Following the transaction, the vice president now owns 10,410 shares of the company’s stock, valued at $2,816,946. The disclosure for this sale can be found here. Insiders have sold 49,614 shares of company stock valued at $13,519,460 in the last quarter. 0.26% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have issued reports on ADP shares. StockNews.com downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Thursday, August 29th. Royal Bank of Canada reissued a “sector perform” rating and set a $267.00 price target on shares of Automatic Data Processing in a report on Thursday, August 1st. Barclays upped their price objective on Automatic Data Processing from $282.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 5th. Jefferies Financial Group boosted their target price on Automatic Data Processing from $250.00 to $260.00 and gave the company a “hold” rating in a report on Thursday, August 1st. Finally, Bank of America increased their price target on Automatic Data Processing from $250.00 to $267.00 and gave the stock a “neutral” rating in a report on Thursday, August 1st. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Automatic Data Processing has a consensus rating of “Hold” and an average price target of $265.36.

Automatic Data Processing Price Performance

NASDAQ:ADP traded up $0.60 during trading hours on Friday, hitting $270.77. The company’s stock had a trading volume of 873,803 shares, compared to its average volume of 1,638,912. Automatic Data Processing, Inc. has a 52-week low of $205.53 and a 52-week high of $278.24. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.01 and a current ratio of 1.01. The business’s 50-day moving average is $255.77 and its two-hundred day moving average is $249.62. The company has a market capitalization of $110.82 billion, a PE ratio of 30.15, a PEG ratio of 3.00 and a beta of 0.78.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, July 31st. The business services provider reported $2.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.06 by $0.03. The business had revenue of $4.80 billion during the quarter, compared to the consensus estimate of $4.74 billion. Automatic Data Processing had a net margin of 19.54% and a return on equity of 89.20%. The business’s revenue was up 7.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.89 EPS. As a group, research analysts anticipate that Automatic Data Processing, Inc. will post 10.04 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 1st. Stockholders of record on Friday, September 13th will be given a dividend of $1.40 per share. The ex-dividend date of this dividend is Friday, September 13th. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.07%. Automatic Data Processing’s payout ratio is 62.50%.

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.