Truvestments Capital LLC Grows Position in Automatic Data Processing, Inc. (NASDAQ:ADP)

Truvestments Capital LLC raised its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 13.7% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 11,889 shares of the business services provider’s stock after buying an additional 1,433 shares during the period. Automatic Data Processing comprises about 0.9% of Truvestments Capital LLC’s holdings, making the stock its 29th largest holding. Truvestments Capital LLC’s holdings in Automatic Data Processing were worth $3,290,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also modified their holdings of ADP. Assenagon Asset Management S.A. grew its stake in shares of Automatic Data Processing by 70.7% in the second quarter. Assenagon Asset Management S.A. now owns 638,507 shares of the business services provider’s stock worth $152,405,000 after acquiring an additional 264,466 shares in the last quarter. Plato Investment Management Ltd boosted its holdings in Automatic Data Processing by 23.8% in the second quarter. Plato Investment Management Ltd now owns 26,610 shares of the business services provider’s stock valued at $6,352,000 after purchasing an additional 5,114 shares during the period. Moloney Securities Asset Management LLC acquired a new position in Automatic Data Processing during the 3rd quarter worth $209,000. ORG Partners LLC increased its holdings in Automatic Data Processing by 2,917.1% during the 2nd quarter. ORG Partners LLC now owns 4,224 shares of the business services provider’s stock worth $997,000 after purchasing an additional 4,084 shares during the period. Finally, RIA Advisory Group LLC acquired a new stake in Automatic Data Processing in the 3rd quarter valued at about $470,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

Shares of ADP opened at $305.15 on Monday. 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 stock’s 50 day moving average is $289.55 and its two-hundred day moving average is $266.18. The firm has a market capitalization of $124.34 billion, a PE ratio of 32.57, a P/E/G ratio of 3.55 and a beta of 0.79. Automatic Data Processing, Inc. has a twelve month low of $227.12 and a twelve 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 EPS for the quarter, beating analysts’ consensus estimates of $2.21 by $0.12. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. The company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.77 billion. During the same quarter last year, the company earned $2.08 earnings per share. Automatic Data Processing’s quarterly revenue was up 7.1% compared to the same quarter last year. Research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th will be issued a $1.54 dividend. The ex-dividend date of this dividend is Friday, December 13th. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.40. This represents a $6.16 dividend on an annualized basis and a yield of 2.02%. Automatic Data Processing’s dividend payout ratio (DPR) is 59.77%.

Analyst Ratings Changes

A number of brokerages have recently commented on ADP. Royal Bank of Canada boosted their price objective on Automatic Data Processing from $267.00 to $315.00 and gave the stock a “sector perform” rating in a research report on Thursday, October 31st. Mizuho raised their price objective on shares of Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a report on Monday, November 4th. StockNews.com downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Thursday, September 19th. Stifel Nicolaus raised their price target on Automatic Data Processing from $271.00 to $287.00 and gave the company a “hold” rating in a research note on Thursday, August 1st. Finally, UBS Group upped their price objective on Automatic Data Processing from $270.00 to $295.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 22nd. Two analysts have rated the stock with a sell rating, nine have given a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $289.91.

Insider Activity

In related news, VP Sreenivasa Kutam sold 38,975 shares of the business’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total value of $11,692,500.00. Following the sale, the vice president now directly owns 32,604 shares in the company, valued at $9,781,200. The trade was a 54.45 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Maria Black sold 19,147 shares of the firm’s stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total transaction of $5,253,553.86. Following the transaction, the chief executive officer now owns 92,807 shares of the company’s stock, valued at $25,464,384.66. This trade represents a 17.10 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 70,504 shares of company stock worth $20,298,056. Company insiders own 0.21% of the company’s stock.

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.