Brian L. Michaud, Corporate Vice President at Automatic Data Processing Inc. (NASDAQ:), recently executed a stock sale according to an SEC filing. On January 2, Michaud sold 362 shares of ADP common stock at an average price of $293.83 per share, totaling approximately $106,366. The transaction comes as ADP, a prominent player in the Professional Services industry, trades near $292 with a market capitalization of $119 billion. According to InvestingPro analysis, the stock currently appears to be trading above its Fair Value. This transaction was conducted under a pre-established Rule 10b5-1 trading plan, adopted in September 2024, allowing for scheduled trades.
Following this sale, Michaud holds 13,705.72 shares in direct ownership. Additionally, on January 1, Michaud acquired 44.95 shares at a price of $278.09 each, contributing to a total acquisition value of $12,499.
In other recent news, Automatic Data Processing (ADP) reported 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:) and strong results in the Employer Services and Professional Employer Organization segments. The company also raised its annual dividend rate, marking its 50th consecutive year of dividend growth, a milestone that places ADP among the prestigious ‘Dividend Kings’.
Meanwhile, analysts from TD Cowen, Stifel, and RBC Capital have maintained their Hold and Sector Perform ratings on ADP shares, while raising their price targets, reflecting the company’s consistent performance and robust bookings. ADP has updated its revenue growth projection for fiscal year 2025 to 6-7%, an increase of approximately $200 million, attributed to the WorkForce Software acquisition and strong first-quarter results. However, the expected improvement in EBIT margin has been revised downward from an increase of 60-80 basis points year-over-year to 30-50 basis points, accounting for around $50 million in acquisition-related headwinds.
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 recent developments shaping ADP’s business operations and future trajectory.
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