Automatic Data Processing (ADP) Holdings Cut by Heritage Investors Management Corp

Heritage Investors Management Corp reduced its stake in shares of Automatic Data Processing (NASDAQ:ADP) by 4.9% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 91,331 shares of the business services provider’s stock after selling 4,668 shares during the quarter. Heritage Investors Management Corp’s holdings in Automatic Data Processing were worth $13,760,000 as of its most recent SEC filing.

A number of other institutional investors also recently added to or reduced their stakes in ADP. Fundsmith Equity Fund L.P. acquired a new position in Automatic Data Processing during the second quarter worth $776,199,000. Millennium Management LLC grew its holdings in shares of Automatic Data Processing by 328.6% during the second quarter. Millennium Management LLC now owns 2,221,504 shares of the business services provider’s stock worth $297,993,000 after purchasing an additional 1,703,162 shares during the last quarter. Senator Investment Group LP bought a new stake in shares of Automatic Data Processing during the second quarter worth $174,382,000. Morgan Stanley grew its holdings in shares of Automatic Data Processing by 11.7% during the second quarter. Morgan Stanley now owns 7,671,784 shares of the business services provider’s stock worth $1,029,094,000 after purchasing an additional 801,928 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in shares of Automatic Data Processing by 48.9% during the second quarter. PNC Financial Services Group Inc. now owns 2,300,258 shares of the business services provider’s stock worth $308,556,000 after purchasing an additional 755,124 shares during the last quarter. Hedge funds and other institutional investors own 77.94% of the company’s stock.

Automatic Data Processing stock opened at $147.19 on Friday. The stock has a market capitalization of $64.92 billion, a P/E ratio of 33.84, a PEG ratio of 2.26 and a beta of 0.91. Automatic Data Processing has a 12-month low of $107.61 and a 12-month high of $153.51. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.43.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, October 31st. The business services provider reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.09. The business had revenue of $3.32 billion for the quarter, compared to analysts’ expectations of $3.28 billion. Automatic Data Processing had a return on equity of 50.96% and a net margin of 12.71%. The firm’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.94 earnings per share. As a group, equities analysts predict that Automatic Data Processing will post 5.26 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, January 1st. Investors of record on Friday, December 14th will be issued a $0.79 dividend. This is a boost from Automatic Data Processing’s previous quarterly dividend of $0.69. The ex-dividend date of this dividend is Thursday, December 13th. This represents a $3.16 annualized dividend and a yield of 2.15%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 63.45%.

In related news, insider Michael A. Bonarti sold 2,334 shares of the firm’s stock in a transaction dated Tuesday, September 4th. The stock was sold at an average price of $144.77, for a total value of $337,893.18. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Carlos A. Rodriguez sold 101,620 shares of the firm’s stock in a transaction dated Thursday, November 8th. The shares were sold at an average price of $147.46, for a total value of $14,984,885.20. Following the completion of the transaction, the chief executive officer now owns 199,405 shares in the company, valued at approximately $29,404,261.30. The disclosure for this sale can be found here. In the last quarter, insiders sold 117,539 shares of company stock worth $17,336,818. 0.33% of the stock is owned by company insiders.

Several brokerages have recently commented on ADP. Guggenheim began coverage on Automatic Data Processing in a report on Monday, August 20th. They set a “buy” rating and a $175.00 target price on the stock. BidaskClub cut Automatic Data Processing from a “strong-buy” rating to a “buy” rating in a report on Wednesday, August 1st. Zacks Investment Research cut Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Tuesday, August 14th. Argus increased their target price on Automatic Data Processing from $145.00 to $150.00 and gave the stock a “buy” rating in a report on Monday, August 13th. Finally, BMO Capital Markets decreased their target price on Automatic Data Processing from $155.00 to $150.00 and set a “market perform” rating on the stock in a report on Thursday, November 1st. Nine analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $148.69.

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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.

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

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