Adp Corp VP DeSilva Sells $387,240 in Stock, Buys Shares at $169.84 By Investing.com

Automatic Data Processing Inc (NASDAQ: ) reported insider trading activity by Corp VP Joseph DeSilva, who sold approximately $387,240 worth of stock. On the same date, DeSilva also purchased shares at a price of $169.84.

The transactions took place on September 17, 2024, according to the latest Form 4 filed with the Securities and Exchange Commission. DeSilva sold a total of 1,383 shares of ADP common stock at an average price of $280.00 per share. DeSilva simultaneously exercised options and purchased the same number of shares, 1,383, at $169.84 each, for a total transaction value of $234,888.

The insider trading plan was established under Rule 10b5-1, which allows company insiders to establish a predetermined plan to buy or sell company stock. The plan was adopted by DeSilva in September 2023.

Following these transactions, DeSilva’s direct ownership is 18,606,653 shares of common stock. The sales and purchases were made as part of a trading plan that had been previously established, providing a systematic approach to trading the company’s shares.

Investors and market watchers often pay close attention to insider trading because they can provide valuable information about a company’s health and the confidence executives have in the company’s future performance. Insider trading reports are mandatory documents for executives and can serve as indicators of potential stock movements.

ADP, a global provider of human capital management solutions, is headquartered in Roseland, New Jersey and is well known for its data processing and outsourcing services.

In other recent news, Automatic Data Processing Inc. (ADP) reported a robust 6% revenue growth for the fourth quarter of fiscal 2024, along with a significant increase in adjusted earnings per share (EPS). The company also announced the pricing of its $1 billion public offering of 4.450% senior notes due 2034, a strategic move intended for general corporate purposes. BofA Securities, reflecting on these developments, adjusted its price target for ADP shares to $276, while maintaining a neutral rating.

In addition to these financial highlights, the U.S. private sector, according to the ADP National Employment Report, added 99,000 jobs in August, with annual payrolls rising 4.8 percent from the same period last year. ADP also launched ADP Assist, a significant factor in increasing company performance and competitive positioning.

Looking ahead, ADP’s fiscal 2025 outlook anticipates revenue growth of 5-6% in the employer services segment and 4-6% growth in the PEO segment. The company also expects adjusted EBIT margin expansion of 60 to 80 basis points. These recent developments suggest a promising trajectory for ADP, according to the valuation firm’s methods and expectations.

InvestingPro Insights

As investors digest the latest insider trading activity at Automatic Data Processing Inc (NASDAQ:ADP), it is critical to consider the company’s financial health and market position. With a robust market capitalization of $112.56 billion, ADP is a major player in the professional services industry. The company’s commitment to shareholder returns is evident, having increased its dividend for 25 consecutive years and maintaining dividend payments for 51 consecutive years, a testament to its financial stability and investor-friendly approach.

ADP’s current P/E ratio is 30.35, which, when paired with a PEG ratio of 2.8, indicates that the stock is trading at a high earnings multiple relative to near-term earnings growth. This could suggest that investors expect higher earnings growth in the future, or that the share price reflects a premium for the company’s quality and stability. Additionally, ADP’s price-to-book ratio is 24.74, which can be considered high, reflecting the market valuation of the company’s assets relative to the value of its capital.

In terms of performance, ADP posted a revenue growth of 6.61% over the trailing twelve months to Q4 2024. Its operating income margin of 26.14% demonstrates a strong ability to convert sales into profit. For those interested in the company’s dividend outlook, ADP boasts a dividend yield of 2.0%, with a notable dividend growth of 12.0% over the same period.

InvestingPro Tips highlights ADP as a stock that generally trades with low price volatility and as a prominent player in its industry. Moreover, with analysts predicting profitability for the year and a high return over the past decade, the company’s shares may be attractive to certain investors. For those seeking a more in-depth analysis, there are 14 additional InvestingPro tips available for ADP on the InvestingPro platform, providing a comprehensive look at the company’s financial value and market position.

As the next earnings date approaches October 23, 2024, investors will be watching closely to see if the company can maintain its trajectory and justify its current market valuation. The information provided by InvestingPro may prove valuable to those seeking to make informed investment decisions regarding ADP.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.