Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Update

Automatic Data Processing, Inc. (NASDAQ:ADP) was the recipient of a large decrease in short interest in the month of July. As of July 31st, there was short interest totalling 4,230,000 shares, a decrease of 11.1% from the July 15th total of 4,760,000 shares. Approximately 1.0% of the company’s shares are sold short. Based on an average trading volume of 1,570,000 shares, the days-to-cover ratio is currently 2.7 days.

Hedge Funds Weigh In On Automatic Data Processing

Several large investors have recently modified their holdings of ADP. Tennessee Valley Asset Management Partners purchased a new stake in shares of Automatic Data Processing in the 4th quarter valued at about $150,000. Lafayette Investments Inc. lifted its stake in Automatic Data Processing by 10.8% during the fourth quarter. Lafayette Investments Inc. now owns 3,501 shares of the business services provider’s stock worth $816,000 after purchasing an additional 342 shares during the last quarter. Tanager Wealth Management LLP increased its position in shares of Automatic Data Processing by 7.5% during the 4th quarter. Tanager Wealth Management LLP now owns 1,090 shares of the business services provider’s stock valued at $255,000 after purchasing an additional 76 shares during the last quarter. Greenleaf Trust raised its holdings in shares of Automatic Data Processing by 48.1% during the 4th quarter. Greenleaf Trust now owns 32,579 shares of the business services provider’s stock valued at $7,590,000 after buying an additional 10,586 shares in the last quarter. Finally, Wetzel Investment Advisors Inc. bought a new stake in Automatic Data Processing in the 4th quarter worth approximately $390,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $264.09 on Monday. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.66. The company has a market capitalization of $108.09 billion, a PE ratio of 29.47, a PEG ratio of 2.72 and a beta of 0.78. The stock’s 50 day moving average price is $248.30 and its 200-day moving average price is $247.51. Automatic Data Processing has a twelve month low of $205.53 and a twelve month high of $269.49.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, July 31st. The business services provider reported $2.09 EPS for the quarter, topping the consensus estimate of $2.06 by $0.03. The business had revenue of $4.80 billion for the quarter, compared to analyst estimates of $4.74 billion. Automatic Data Processing had a net margin of 19.54% and a return on equity of 89.20%. The company’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.89 earnings per share. On average, equities analysts anticipate that Automatic Data Processing will post 10.01 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 1st. Investors of record on Friday, September 13th will be paid a $1.40 dividend. This represents a $5.60 dividend on an annualized basis and a yield of 2.12%. The ex-dividend date of this dividend is Friday, September 13th. Automatic Data Processing’s dividend payout ratio is currently 62.50%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ADP shares. Barclays raised their target price on Automatic Data Processing from $282.00 to $310.00 and gave the stock an “overweight” rating in a research report on Monday, August 5th. Bank of America raised their price objective on Automatic Data Processing from $250.00 to $267.00 and gave the stock a “neutral” rating in a research report on Thursday, August 1st. JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $254.00 to $250.00 and set an “underweight” rating on the stock in a report on Thursday, May 2nd. TD Cowen lowered their price target on shares of Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating for the company in a report on Thursday, May 2nd. Finally, Jefferies Financial Group boosted their price target on shares of Automatic Data Processing from $250.00 to $260.00 and gave the stock a “hold” rating in a research report on Thursday, August 1st. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $262.18.

About Automatic Data Processing

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.