Is Buying Stock Like Automatic Data Processing Good Idea After Today’s Bullish Options Activity?

 Is Buying Stock Like Automatic Data Processing Good Idea After Today's Bullish Options Activity?

In today’s session Automatic Data Processing (ADP) registered an unusually high (1,196) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious ADP increase. With 1,196 contracts traded and 344 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: ADP170120C00097500 closed last at: $1.65 or 6.5% up. About 108,735 shares traded hands. Automatic Data Processing (NASDAQ:ADP) has risen 7.81% since April 22, 2016 and is uptrending. It has outperformed by 2.40% the S&P500.

Analysts await Automatic Data Processing (NASDAQ:ADP) to report earnings on February, 1. They expect $0.81 earnings per share, up 12.50% or $0.09 from last year’s $0.72 per share. ADP’s profit will be $366.41M for 29.80 P/E if the $0.81 EPS becomes a reality. After $0.86 actual earnings per share reported by Automatic Data Processing for the previous quarter, Wall Street now forecasts -5.81% negative EPS growth.

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. $100 is the highest target while $76 is the lowest. The $91.38 average target is -5.36% below today’s ($96.56) stock price. Automatic Data has been the topic of 14 analyst reports since August 3, 2015 according to StockzIntelligence Inc. RBC Capital Markets maintained it with “Sector Perform” rating and $87 target price in Thursday, February 4 report. The company was maintained on Friday, July 29 by Citigroup. The rating was maintained by RBC Capital Markets on Monday, May 2 with “Sector Perform”. On Friday, April 15 the stock rating was initiated by Compass Point with “Sell”. The firm has “Sector Perform” rating given on Monday, August 3 by RBC Capital Markets. Argus Research maintained it with “Buy” rating and $98 target price in Tuesday, May 3 report. Bernstein upgraded the shares of ADP in a report on Monday, July 11 to “Outperform” rating. As per Friday, August 14, the company rating was maintained by JP Morgan. The firm earned “Neutral” rating on Friday, September 9 by Wedbush. The stock has “Outperform” rating given by William Blair on Monday, August 31.

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 0.96 in 2016 Q2. Its up 0.07, from 0.89 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 Corporation Mi has 0.68% invested in the company for 22,652 shares. Neville Rodie Shaw accumulated 43,558 shares or 0.48% of the stock. Pacifica Capital Investments holds 0.21% or 4,400 shares in its portfolio. Moreover, Goelzer Invest Mngmt has 0.05% invested in Automatic Data Processing (NASDAQ:ADP) for 4,142 shares. St James Investment Co Limited Liability accumulated 0.06% or 5,250 shares. Joel Isaacson And Ltd Liability Com holds 4,324 shares or 0.08% of its portfolio. Natl Asset Mngmt last reported 7,812 shares in the company. Capital Finance Advisers Ltd Liability Corp has 26,235 shares for 0.02% of their US portfolio. Pacific Glob Inv Mngmt Co has invested 0.08% of its portfolio in Automatic Data Processing (NASDAQ:ADP). Monarch Cap Mngmt Inc holds 59,808 shares or 2.05% of its portfolio. Capital Invest Counsel last reported 25,984 shares in the company. Moreover, Jarislowsky Fraser has 0.31% invested in Automatic Data Processing (NASDAQ:ADP) for 1.16 million shares. The New York-based Clearbridge Ltd Limited Liability Company has invested 0.49% in Automatic Data Processing (NASDAQ:ADP). Fiera Cap last reported 0% of its portfolio in the stock. Blb&B Ltd Liability Company holds 0.78% of its portfolio in Automatic Data Processing (NASDAQ:ADP) for 44,896 shares.

Insider Transactions: Since June 7, 2016, the stock had 0 insider buys, and 17 selling transactions for $11.32 million net activity. O’Brien Dermot J sold $451,947 worth of stock. Another trade for 378 shares valued at $34,776 was made by Albinson Brock on Friday, July 1. $47,430 worth of Automatic Data Processing (NASDAQ:ADP) shares were sold by Black Maria. Sackman Stuart also sold $184,823 worth of Automatic Data Processing (NASDAQ:ADP) shares. Shares for $79,078 were sold by Dyson Deborah L. Siegmund Jan had sold 6,592 shares worth $588,006 on Wednesday, September 7. Rodriguez Carlos A sold $6.37M worth of stock or 67,064 shares.

Automatic Data Processing, Inc. is a well-known provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The company has a market cap of $43.68 billion. The Firm also provides business process outsourcing solutions. It has a 28.93 P/E ratio. The Company’s divisions include Employer Services and Professional Employer Organization (PEO) Services.

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: “Automatic Data Processing a Top Ranked SAFE Dividend Stock With 2.5% Yield (ADP)” on November 09, 2016, also Finance.Yahoo.com with their article: “Automatic Data Processing’s Earnings, Dividend Increase” published on November 14, 2016, Foxbusiness.com published: “PEO Services Growth Propels Automatic Data Processing Earnings Higher” on November 08, 2016. More interesting news about Automatic Data Processing (NASDAQ:ADP) were released by: Nasdaq.com and their article: “Automatic Data Processing to announce dividend increase” published on November 05, 2016 as well as Seekingalpha.com‘s news article titled: “Analysis Of Automatic Data Processing’s Earnings And Dividend Increases” with publication date: November 14, 2016.

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