Traders Buy Large Volume of Put Options on Automatic Data Processing (NASDAQ:ADP)

Automatic Data Processing, Inc. (NASDAQ:ADP) was the recipient of some unusual options trading activity on Monday. Stock traders bought 2,895 put options on the stock. This is an increase of approximately 45% compared to the typical daily volume of 2,000 put options.

Automatic Data Processing Stock Performance

ADP stock opened at $298.06 on Wednesday. The stock has a market cap of $121.45 billion, a P/E ratio of 31.08, a P/E/G ratio of 3.62 and a beta of 0.74. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a 50 day simple moving average of $302.03 and a 200 day simple moving average of $297.93. Automatic Data Processing has a 52 week low of $231.27 and a 52 week high of $322.84.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 29th. The business services provider reported $2.35 EPS for the quarter, beating the consensus estimate of $2.30 by $0.05. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%. Research analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 1st. Stockholders of record on Friday, June 13th will be issued a dividend of $1.54 per share. The ex-dividend date is Friday, June 13th. This represents a $6.16 annualized dividend and a dividend yield of 2.07%. Automatic Data Processing’s dividend payout ratio is 64.23%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 473 shares of the business’s stock in a transaction on Monday, March 10th. The stock was sold at an average price of $306.20, for a total value of $144,832.60. Following the sale, the vice president now owns 7,244 shares of the company’s stock, valued at approximately $2,218,112.80. The trade was a 6.13 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Jonathan S. Lehberger sold 2,324 shares of the firm’s stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $303.30, for a total value of $704,869.20. Following the transaction, the vice president now directly owns 3,063 shares of the company’s stock, valued at $929,007.90. This represents a 43.14 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 4,775 shares of company stock valued at $1,447,893. Company insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Automatic Data Processing

Several large investors have recently made changes to their positions in ADP. Main Street Group LTD increased its stake in shares of Automatic Data Processing by 50.7% during the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider’s stock worth $33,000 after purchasing an additional 38 shares during the last quarter. Cyrus J. Lawrence LLC increased its position in Automatic Data Processing by 121.8% during the fourth quarter. Cyrus J. Lawrence LLC now owns 122 shares of the business services provider’s stock worth $35,000 after buying an additional 67 shares during the last quarter. Sugar Maple Asset Management LLC bought a new position in Automatic Data Processing during the fourth quarter valued at about $37,000. Wingate Wealth Advisors Inc. acquired a new stake in shares of Automatic Data Processing in the fourth quarter worth about $37,000. Finally, Banque de Luxembourg S.A. bought a new stake in shares of Automatic Data Processing during the 4th quarter worth about $37,000. Institutional investors own 80.03% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ADP. Barclays raised their target price on shares of Automatic Data Processing from $325.00 to $350.00 and gave the stock an “overweight” rating in a report on Monday, February 3rd. UBS Group lifted their target price on Automatic Data Processing from $318.00 to $324.00 and gave the stock a “neutral” rating in a report on Tuesday, March 4th. Jefferies Financial Group upped their target price on Automatic Data Processing from $290.00 to $305.00 and gave the company a “hold” rating in a report on Thursday, January 30th. Royal Bank of Canada reissued a “sector perform” rating and issued a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, January 30th. Finally, StockNews.com downgraded Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Wednesday, February 5th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and a consensus target price of $302.30.

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.