After Today’s Bullish Options Activity, Is Automatic Data Processing’s Near-Term Analysis Positive?

 After Today's Bullish Options Activity, Is Automatic Data Processing's Near Term Analysis Positive?

In today’s session Automatic Data Processing (ADP) registered an unusually high (382) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious ADP increase. With 382 contracts traded and 21864 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: ADP161118C00090000 closed last at: $0.55 or 22.2% up. About 1.03 million shares traded hands. Automatic Data Processing (NASDAQ:ADP) has declined 2.34% since March 30, 2016 and is downtrending. It has underperformed by 5.36% the S&P500.

Automatic Data Processing (NASDAQ:ADP) Ratings Coverage

Out of 11 analysts covering Automatic Data (NASDAQ:ADP), 3 rate it a “Buy”, 2 “Sell”, while 6 “Hold”. This means 27% are positive. Automatic Data has been the topic of 14 analyst reports since August 3, 2015 according to StockzIntelligence Inc. The company was maintained on Monday, August 3 by RBC Capital Markets. On Tuesday, May 3 the stock rating was maintained by Argus Research with “Buy”. The stock of Automatic Data Processing (NASDAQ:ADP) earned “Outperform” rating by William Blair on Monday, August 31. Compass Point initiated the shares of ADP in a report on Friday, April 15 with “Sell” rating. The stock of Automatic Data Processing (NASDAQ:ADP) has “Neutral” rating given on Friday, August 14 by JP Morgan. Bernstein upgraded the stock to “Outperform” rating in Monday, July 11 report. The firm earned “Buy” rating on Tuesday, November 3 by Argus Research. The stock of Automatic Data Processing (NASDAQ:ADP) earned “Neutral” rating by Wedbush on Friday, September 9. Citigroup maintained Automatic Data Processing (NASDAQ:ADP) on Friday, July 29 with “Neutral” rating. Topeka Capital Markets maintained the stock with “Sell” rating in Thursday, October 29 report.

According to Zacks Investment Research, “Automatic Data Processing, Inc. is one of the largest providers of computerized transaction processing, data communication, and information services in the world. ADP Employer Services offers a comprehensive range of payroll, human resources, benefits administration, time and attendance, tax filing and reporting, professional employer organization, compliance management and retirement plan services to employers in the United States, Canada, Europe and Latin America.”

Insitutional Activity: The institutional sentiment increased to 0.89 in Q2 2016. Its up 0.10, from 0.79 in 2016Q1. The ratio improved, as 44 funds sold all Automatic Data Processing shares owned while 379 reduced positions. 59 funds bought stakes while 316 increased positions. They now own 344.03 million shares or 3.92% less from 358.07 million shares in 2016Q1.
Arcadia Invest Management Mi has 22,652 shares for 0.68% of their US portfolio. Goelzer Mngmt Incorporated has invested 0.05% of its portfolio in Automatic Data Processing (NASDAQ:ADP). The Florida-based Sabal Tru has invested 0.03% in Automatic Data Processing (NASDAQ:ADP). Cincinnati Specialty Underwriters Ins Co owns 47,000 shares or 5.16% of their US portfolio. Baring Asset Mngmt accumulated 2,543 shares or 0.02% of the stock. The Montana-based First Interstate National Bank has invested 0.12% in Automatic Data Processing (NASDAQ:ADP). Heritage Invsts reported 129,246 shares or 0.9% of all its holdings. Ameritas Invest Prns Inc holds 0.25% or 42,092 shares in its portfolio. The Massachusetts-based Baldwin Brothers Ma has invested 0.04% in Automatic Data Processing (NASDAQ:ADP). Halsey Assoc Ct holds 0.42% of its portfolio in Automatic Data Processing (NASDAQ:ADP) for 20,539 shares. Dowling And Yahnke Ltd Co owns 38,650 shares or 0.43% of their US portfolio. Tradewinds Capital Management Limited Liability Company has invested 0.06% of its portfolio in Automatic Data Processing (NASDAQ:ADP). Bangor Retail Bank has 0.21% invested in the company for 9,442 shares. Valley National Advisers, a Pennsylvania-based fund reported 327 shares. Northrock Ltd Limited Liability Company holds 0.09% of its portfolio in Automatic Data Processing (NASDAQ:ADP) for 2,197 shares.

Insider Transactions: Since June 7, 2016, the stock had 0 insider purchases, and 17 sales for $11.32 million net activity. 5,048 shares with value of $451,947 were sold by O’Brien Dermot J on Thursday, September 1. Another trade for 10,000 shares valued at $899,100 was sold by Rodriguez Carlos A. Eberhard Michael C sold $313,904 worth of Automatic Data Processing (NASDAQ:ADP) on Friday, July 1. 378 shares were sold by Albinson Brock, worth $34,776 on Friday, July 1. 1,855 shares were sold by Black Maria, worth $170,660 on Friday, July 1. 1,083 shares were sold by Ayala John, worth $97,167. $184,823 worth of Automatic Data Processing (NASDAQ:ADP) shares were sold by Sackman Stuart.

Automatic Data Processing, Inc. is a well-known provider of human capital management (HCM) solutions and business process outsourcing. The company has a market cap of $39.44 billion. The Firm operates through two divisions: Employer Services and Professional Employer Organization (PEO) Services. It has a 26.72 P/E ratio. The Employer Services segment offers a range of business outsourcing and technology-enabled HCM solutions.

ADP Company Profile

Automatic Data Processing, Inc. (ADP), incorporated on June 12, 1961, is a well-known provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Firm also provides business process outsourcing solutions. The Company’s divisions include Employer Services and Professional Employer Organization (PEO) Services. The Firm markets its solutions primarily through its direct sales force. Employer Services also markets its solutions through indirect sales channels, such as marketing relationships with banks and certified public accountants, among others.

More notable recent Automatic Data Processing (NASDAQ:ADP) news were published by: Forbes.com which released: “January 2019 Options Now Available For Automatic Data Processing (ADP)” on October 17, 2016, also Zacks.com with their article: “Automatic Data Processing (ADP) Q1 Earnings: Will it Beat?” published on October 28, 2016, Seekingalpha.com published: “Automatic Data Processing: Dividend Gem” on October 03, 2016. More interesting news about Automatic Data Processing (NASDAQ:ADP) were released by: Seekingalpha.com and their article: “Automatic Data Processing Outsourcing Capital To Shareholders” published on October 04, 2016 as well as Wsj.com‘s news article titled: “ADP Private Payrolls Rise 154000 in September” with publication date: October 05, 2016.

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