Cynosure Group LLC Cuts Stock Position in Automatic Data Processing, Inc. (NASDAQ:ADP)

Cynosure Group LLC decreased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 7.5% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,618 shares of the business services provider’s stock after selling 132 shares during the quarter. Cynosure Group LLC’s holdings in Automatic Data Processing were worth $448,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in ADP. Kiely Wealth Advisory Group Inc. purchased a new position in Automatic Data Processing in the 2nd quarter worth approximately $27,000. Hexagon Capital Partners LLC lifted its holdings in shares of Automatic Data Processing by 78.5% during the third quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider’s stock valued at $32,000 after purchasing an additional 51 shares in the last quarter. Capital Performance Advisors LLP purchased a new stake in shares of Automatic Data Processing during the third quarter valued at $35,000. Pathway Financial Advisers LLC bought a new stake in Automatic Data Processing in the 1st quarter worth about $36,000. Finally, MFA Wealth Advisors LLC purchased a new position in Automatic Data Processing in the 2nd quarter worth about $40,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $306.92 on Thursday. The company has a market capitalization of $125.06 billion, a P/E ratio of 32.76, a P/E/G ratio of 3.55 and a beta of 0.79. Automatic Data Processing, Inc. has a 1-year low of $227.12 and a 1-year high of $309.63. The firm’s 50 day simple moving average is $291.26 and its two-hundred day simple moving average is $267.31. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.01 and a quick ratio of 1.01.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 30th. The business services provider reported $2.33 earnings per share for the quarter, beating analysts’ consensus estimates of $2.21 by $0.12. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. The company had revenue of $4.83 billion for the quarter, compared to analysts’ expectations of $4.77 billion. During the same quarter in the previous year, the company earned $2.08 EPS. Automatic Data Processing’s revenue for the quarter was up 7.1% on a year-over-year basis. Research analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Investors of record on Friday, December 13th will be given a dividend of $1.54 per share. The ex-dividend date is Friday, December 13th. This represents a $6.16 annualized dividend and a dividend yield of 2.01%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.40. Automatic Data Processing’s dividend payout ratio (DPR) is currently 59.77%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ADP. Royal Bank of Canada raised their price target on shares of Automatic Data Processing from $267.00 to $315.00 and gave the company a “sector perform” rating in a report on Thursday, October 31st. Bank of America lifted their target price on shares of Automatic Data Processing from $250.00 to $267.00 and gave the stock a “neutral” rating in a research report on Thursday, August 1st. Jefferies Financial Group increased their price target on Automatic Data Processing from $260.00 to $290.00 and gave the company a “hold” rating in a report on Tuesday, October 22nd. Mizuho lifted their price objective on Automatic Data Processing from $281.00 to $310.00 and gave the stock an “outperform” rating in a report on Monday, November 4th. Finally, StockNews.com downgraded Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Thursday, September 19th. 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. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $289.91.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Don Mcguire sold 3,179 shares of Automatic Data Processing stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total value of $872,254.02. Following the sale, the vice president now directly owns 41,696 shares in the company, valued at approximately $11,440,548.48. The trade was a 7.08 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Maria Black sold 19,147 shares of the 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 directly owns 92,807 shares of the company’s stock, valued at $25,464,384.66. This trade represents a 17.10 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 70,504 shares of company stock valued at $20,298,056. 0.21% of the stock is owned by company insiders.

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.