David Foskett, Corporate Vice President at Automatic Data Processing Inc. (NASDAQ:ADP), recently executed a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission. On January 13, Foskett sold a total of 1,067 shares of ADP common stock, generating proceeds of approximately $305,321, with the shares priced at $286.15 each. The transaction occurred as ADP, currently valued at $118.8 billion, trades near its 52-week high of $309.63. According to InvestingPro analysis, the stock trades at premium valuations with a P/E ratio of 30.9x.
Additionally, Foskett acquired 1,249 shares through the exercise of stock options at a price of $206.86 per share, amounting to a total value of $258,368. These transactions were conducted under a Rule 10b5-1 trading plan established in September 2024. Following these transactions, Foskett holds 6,139.671 shares of ADP common stock. The company maintains strong fundamentals with a 48.1% gross profit margin and has raised its dividend for 26 consecutive years. For deeper insights into ADP's valuation and financial health metrics, including 13 additional exclusive ProTips, check out the comprehensive research available on InvestingPro.
In other recent news, Automatic Data Processing (ADP) has been in the spotlight due to several significant developments. The company reported a robust first quarter performance, with a 7% increase in revenue and a 12% rise in earnings per share (EPS), surpassing market expectations. This performance was attributed to the successful acquisition of WorkForce Software (ETR:SOWGn) and strong results in the Employer Services and Professional Employer Organization segments.
ADP also raised its annual dividend rate by $0.14, marking its 50th consecutive year of dividend growth. This achievement places ADP among the prestigious 'Dividend Kings', a select group of companies with a history of increasing dividends for at least five decades. The new dividend rate of $1.54 per share underscores the board's confidence in ADP's financial strength and commitment to delivering shareholder value.
TD Cowen's analysts, led by Jared Levine, increased their price target on shares of ADP to $290 from $285, while maintaining a Hold rating on the stock. Levine's analysis suggests a steady performance from ADP, with the expectation that the company will confirm its total revenue and EPS guidance. He anticipates that ADP will exceed Wall Street's consensus estimates for second-quarter revenue and adjust its EBIT guidance upwards by 10 basis points.
In terms of executive changes, John C. Ayala, the current Chief Operating Officer, is set to leave his role, and Joseph DeSilva, currently President of Global Sales at ADP, will step into the role of Executive Vice President, North America and Chief of Operations. Lastly, ADP has introduced ADP Lyric, a new global human capital management platform. These are the recent developments shaping ADP's business operations and future trajectory.
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