Northstar Group Inc. lessened its stake in shares of Automatic Data Processing (NASDAQ:ADP) by 1.1% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 15,323 shares of the business services provider’s stock after selling 173 shares during the quarter. Automatic Data Processing comprises about 1.0% of Northstar Group Inc.’s investment portfolio, making the stock its 25th biggest holding. Northstar Group Inc.’s holdings in Automatic Data Processing were worth $2,612,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors also recently bought and sold shares of the company. Horan Capital Advisors LLC. acquired a new position in Automatic Data Processing in the third quarter worth approximately $31,000. Gradient Investments LLC grew its position in Automatic Data Processing by 126.2% in the third quarter. Gradient Investments LLC now owns 276 shares of the business services provider’s stock worth $45,000 after buying an additional 154 shares during the last quarter. Penserra Capital Management LLC acquired a new position in Automatic Data Processing in the third quarter worth approximately $48,000. Usca Ria LLC acquired a new position in Automatic Data Processing in the third quarter worth approximately $52,000. Finally, North Star Investment Management Corp. acquired a new position in Automatic Data Processing in the third quarter worth approximately $76,000. Institutional investors and hedge funds own 80.01% of the company’s stock.
NASDAQ ADP traded down $0.67 on Tuesday, hitting $176.20. 2,015,436 shares of the stock were exchanged, compared to its average volume of 1,625,260. Automatic Data Processing has a 52-week low of $132.04 and a 52-week high of $177.60. 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 company has a market capitalization of $76.53 billion, a price-to-earnings ratio of 32.45, a P/E/G ratio of 2.21 and a beta of 0.86. The company’s 50-day moving average price is $170.55 and its two-hundred day moving average price is $166.40.
Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 30th. The business services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.01. The firm 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 company’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.20 EPS. Equities analysts predict that Automatic Data Processing will post 6.16 EPS for the current fiscal year.
Automatic Data Processing announced that its board has initiated a stock repurchase plan on Tuesday, November 12th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 6.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 2.07%. The ex-dividend date of this dividend is Thursday, March 12th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 66.79%.
In related news, CEO Carlos A. Rodriguez sold 48,571 shares of Automatic Data Processing stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $168.51, for a total value of $8,184,699.21. Following the completion of the sale, the chief executive officer now owns 144,899 shares of the company’s stock, valued at approximately $24,416,930.49. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP John Ayala sold 6,484 shares of Automatic Data Processing stock in a transaction on Friday, January 17th. The shares were sold at an average price of $176.03, for a total transaction of $1,141,378.52. Following the completion of the sale, the vice president now directly owns 19,578 shares of the company’s stock, valued at approximately $3,446,315.34. The disclosure for this sale can be found here. Insiders have sold a total of 57,381 shares of company stock valued at $9,722,333 in the last three months. Company insiders own 0.31% of the company’s stock.
ADP has been the topic of several recent research reports. Moffett Nathanson lowered shares of Automatic Data Processing from a “buy” rating to a “neutral” rating in a research report on Tuesday, January 7th. ValuEngine upgraded shares of Automatic Data Processing from a “sell” rating to a “hold” rating in a research report on Tuesday, December 3rd. Credit Suisse Group reiterated a “buy” rating and set a $185.00 price objective on shares of Automatic Data Processing in a research report on Monday, November 4th. BidaskClub cut shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Thursday, December 5th. Finally, Citigroup lifted their price objective on shares of Automatic Data Processing from $170.00 to $185.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 14th. Eleven research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $182.11.
About Automatic Data Processing
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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