Automatic Data Processing Inc News and Headlines -

GuruFocus Articles Total 200
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The company's most recent quarter was solid and guidance was raised, making the stock a compelling purchase on an otherwise weak day for the market

Automatic Data Processing Inc. (ADP), one of the largest business outsourcing companies found anywhere in the world, recently reported earnings results. The company managed to top estimates for both revenue and earnings per share.

While this is good news, what I really took away from the quarter was that Automatic Data Processing believes its fiscal year will be better than expected as the company revised its guidance higher for the top and bottom lines. This is despite the impact that the coronavirus is having on normal business operations for its customers.

Recent performance plus the revised guidance led us to

262 Views    Nathan Parsh    2020-10-29 19:20
The company's most recent quarter was negatively impacted by Covid-19, but the stock offers a solid, safe yield

Automatic Data Processing Inc. (ADP), the largest provider of business outsourcing solutions in the U.S., held up well during its most recent quarter. Given the number of jobs that have been lost over the last quarter to the Covid-19 pandemic, this is a surprising result. At the same time, Automatic Data Processing offers a yield higher than its historical average that is well protected by free cash flow.

Let's look closer at Automatic Data Processing to see why long-term investors should consider buying shares of the company now.

Company background, quarterly highlights and analysis

Automatic Data Processing is composed of

575 Views    Nathan Parsh    2020-09-02 19:14
Firm's largest sales of the 2nd quarter

Tom Gayner (Trades, Portfolio) is the Co-CEO at Markel Gayner Asset Management Corp. The hedge fund had an equity portfolio composed of 114 stocks valued at $5.37 billion at the quarter's end. It sold shares of the following stocks during the second quarter of 2020.

CarMax

The fund exited its position in CarMax Inc. (KMX). The trade had an impact of -4.98% on the portfolio.

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The company, which provides used and new cars, has a market cap of $16.20 billion and an enterprise value of $30.87 billion.

GuruFocus gives the

60 Views    Tiziano Frateschi    2020-08-05 15:55
Markel co-CEO does massive equity selling spree to bolster growth in insurance operations

Looking to support growth in the company’s insurance operations, Markel Corp. (MKL) co-CEO Tom Gayner (Trades, Portfolio) said in a July 29 earnings call that he significantly reduced the Virginia-based insurance company’s exposure to publicly-traded securities during the strong market rally of the second quarter. Among Gayner’s double-digit sale transactions, the top five divestments in terms of portfolio weight were CarMax Inc. (KMX), Marriott International Inc. (MAR), Walgreens Boots Alliance Inc. (WBA), Automatic Data Processing Inc. (ADP) and Anthem Inc. (ANTM).

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Guru cuts back on equity exposure following strong market

547 Views    James Li    2020-08-04 20:19
Automatic Data Processing, Albemarle, Coca-Cola and Leggett & Platt are about to pay investors

For dividend growth investors, the ex-dividend date is just as important as the dividend payment date. Investors need to own shares of the company prior to the ex-dividend date in order to be entitled to the next dividend.

In this article, we will look at four companies with an ex-dividend date coming up in the next week. Each of the stocks discussed in this article have at least 25 years of dividend growth, qualifying them as Dividend Aristocrats.

Automatic Data Processing

  • Ex-Dividend Date: June 11
  • Dividend Payment Date: July 1
  • Current Dividend Yield: 2.3%
  • Years of Dividend Growth: 44
270 Views    Nathan Parsh    2020-06-08 15:15
A founder-led company with attractive economics and decent prospects


"I saw an opportunity for people to have something easier to use but also to generate efficiencies to improve their business.” - Chad Richison, founder of Paycom

The tech sector has been filled with fantastic growth stories across different industries, verticals and business models. Meanwhile, from an owner’s perspective, not all growth is created equal. A superior return on capital is necessary to create shareholder value. In this regard, it would be quite challenging to find a technology business delivering both high growth and high returns consistently. Oklahoma-based Paycom Software Inc. (PAYC) is a

1145 Views    Steven Chen    2020-05-31 20:42
Firm's top new buys include Facebook and Buffett's conglomerate

Olstein Capital Management, the firm co-founded by Robert Olstein (Trades, Portfolio), disclosed this week that it established four new positions during the first quarter: Facebook Inc. (FB), Berkshire Hathaway Inc. (BRK.A)(BRK.B), Hologic Inc. (HOLX) and Automatic Data Processing Inc. (ADP).

The firm selects stocks using a “defense first” approach: Olstein peruses the company’s financial statements to access financial strength and downside risk. The firm seeks companies that generate more cash flow than necessary to sustain the business, avoid aggressive accounting practices and demonstrate fundamentals that show high financial strength.

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As of

351 Views    James Li    2020-05-13 21:37
Fund adds to its holdings in health care, tobacco and technology

The MS Global Franchise Fund (Trades, Portfolio), which is part of Morgan Stanley (MS), recently disclosed its portfolio updates for the fourth quarter of 2019.

Based in New York, the fund is managed by a nine-person team that invests based on a bottom-up stock selection process. The team looks for companies that have strong franchises, high and sustainable return on invested capital, strong free cash flow, difficult-to-duplicate intangible assets, good financial strength and capable management.

Based on the above investing criteria, the firm added the most to its holdings in Thermo Fisher Scientific Inc. (TMO), Philip Morris

130 Views    Margaret Moran    2020-03-09 21:21
Automatic Data Processing makes the list

According to the GuruFocus All-In-One Screener, a Premium feature, the following companies were trading with low price-sales ratios as of March 3.

Saratoga Investment

Saratoga Investment Corp. (SAR) was trading around $24.5 per share with a price-sales ratio of 4.96 and a price-earnings ratio of 5.8.

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The specialty finance company has a market cap of $280 million. The stock has risen at an annualized rate of 9.9% over the past decade.

The discounted cash flow calculator gives the company a fair value of $46.12, suggesting it is undervalued with a 45% margin of

75 Views    Tiziano Frateschi    2020-03-03 20:30
Their stock prices have increased faster than the S&P 500

Shares of Automatic Data Processing Inc. (ADP), Smith & Nephew PLC (SNN) and Nexstar Media Group Inc. (NXST) have performed strongly over the past several years, topping the overall U.S. stock market in terms of stock price appreciation.

The S&P 500 index, which is used as a benchmark for the U.S. market, rose 19.2% in the past 12 months, 24% in the past two years and 40.3% in the past three years through Monday, Feb. 3.

An essential catalyst to the share prices of these stocks over the observed period has been their profitability, which GuruFocus has rated with high

59 Views    Alberto Abaterusso    2020-02-04 16:56
The hedge fund's biggest moves of the third quarter, with shareholder letter excerpts

Activist investor Bill Ackman (Trades, Portfolio)’s Pershing Square Capital Management recently released its portfolio update for the third quarter. During the quarter, the hedge fund sold out of its position in Automatic Data Processing Inc. (ADP). It also added more shares of Berkshire Hathaway Inc. (BRK.B) and slightly trimmed its holdings in Chipotle Mexican Grill Inc. (CMG), Hilton Worldwide Holdings Inc. (HLT), Restaurant Brands International Inc. (QSR) and Lowe's Companies Inc. (LOW).

The fund holds shares in seven companies, comprising an equity portfolio valued at $6.27 billion as of the quarter’s end. Founded by Bill Ackman

1107 Views    Margaret Moran    2020-01-22 21:17
A cash cow and also a cash calf

I went to executives at Electronic Accounting Systems with my plan. They looked at me and said, 'We don't think it's a good idea.' I sat on the idea for about two more months. Then I walked into the president's office one more time and said, "What do you think?" He said no. I said, "Well, I'm going to leave and start a company." It was November 1970. I was 29. He wished me well, sort of.

- Thomas Golisano, founder of Paychex

Rochester, NY-based Paychex is the recognized leader in the payroll, human resource, and benefits outsourcing

190 Views    Steven CHEN    2019-11-27 16:21
A combination of a mini ADP, a mini bank with no credit risk and a mini Visa that has been growing the bottom line for several years

HealthEquity Inc. (HQY) is a gem. Not only can the company more than triple its highly profitable revenue stream at industry maturity, but it has a terrific business. Think of it as a combination of a mini Automatic Data Processing (ADP), a mini bank with no credit risk and a mini Visa (V). The stock is down 40% from its high, so the valuation has become reasonable. This company has been, and probably will be, growing its bottom line at over 20% for a few years.

Details

What is the biggest problem in the U.S.?

No doubt the cost of

376 Views    New Moon    2019-11-21 22:42
Use these tools to help figure out what to pay for stocks

In an earlier section of their 2014 book, "Strategic Value Investing: Practical Techniques of Leading Value Investors," authors Stephen Horan, Robert R. Johnson and Thomas Robinson discussed the dividend discount model, a type of discounted cash flow (DCF) analysis, for stock valuations.

These models, among others, are used to estimate the present value of a stock by discounting back future cash flows. Present value tells us how much these future income streams are worth to us today, based on the idea that current dollars are always worth more than dollars in the future (in turn, that reflects the

278 Views    Robert Abbott    2019-08-23 16:45
Guru stock highlight

During the last several weeks, we sold our stake in ADP (NASDAQ:ADP). Although we expect ADP to continue to do well over time as the company executes on its business transformation, we view the prospective returns from today as more modest because the market is now more accurately pricing in ADP’s prospects for success.

We achieved many of the objectives we established when we initiated our position in ADP. This led to a highly successful investment outcome particularly considering the low-risk and unleveraged nature of ADP’s business. At the time of our exit,

68 Views    Holly LaFon    2019-08-16 20:33
Discussion of markets and holdings

LETTER TO SHAREHOLDERS

To the Shareholders of Pershing Square Holdings, Ltd.:

For the first six months of 2019 and year-to-date, the Company’s total return was 45.3% and 48.9%, respectively, compared with the S&P 500’s performance of 18.5% and 18.2% respectively.(5) PSH’s returns have been driven by gains across our portfolio due to fundamental business performance at our portfolio companies being better than the market expected as well as strong stock market performance. We believe our improved absolute and relative performance for the last two years is a direct result of the organizational changes we have implemented at Pershing Square, and

309 Views    Holly LaFon    2019-08-16 18:59
Investor also buys stake in another company representing 12% of net asset value

Bill Ackman (Trades, Portfolio)’s Pershing Square exited two holdings worth about 20% of his equity portfolio in recent months.

The firm announced Monday that it closed a position in United Technologies (UTX), which had an 11.17% portfolio weight, on June 10. He sold Automatic Data Processing Inc. (ADP), which represented 0.58% of the portfolio, on July 31. The investor also acquired a stake in an undisclosed company representing 12% of his fund’s net asset value.

Ackman’s sale of aerospace technology provider United Technologies came the day after the company announced it would merge its aerospace business with

738 Views    Holly LaFon    2019-08-06 22:24
The company is embracing changes in the human capital management industry to improve the customer experience

Shares of human resource and payroll services giant Automatic Data Processing Inc. (ADP) are up nearly 25% this year following a string of impressive results in the last several quarters.

ADP supplies companies with human resource management software globally and has recently been adapting to new technologies to serve its customers better.

The company has recently entered several key partnerships that will help drive growth. The human resource management and services market is undergoing a major disruption phase, with companies adopting new payment methods, employee data collection and management services, as well

173 Views    Nicholas Kitonyi    2019-05-28 21:36
Guru stock highlight

ADP’s (NASDAQ:ADP) fiscal third quarter earnings results continue to highlight the significant opportunity for accelerated revenue growth and improved prospective profitability. ADP reported 4% revenue growth (5% organic constant-currency), 10% growth in adjusted operating profit (aided by 130 basis points of margin expansion), and 13% growth in adjusted EPS. While revenue growth was somewhat softer than recent prior quarters, ADP’s bookings growth – a leading indicator of future revenue growth – jumped to 10%, a significant acceleration from previous periods.

ADP continued to execute on its ongoing business transformation in the quarter by generating better-than-expected Employer Services operational margins

65 Views    Holly LaFon    2019-05-17 22:22
Multiple companies have managed to achieve yearly highs as of late

According to GuruFocus list of 52-week highs, these Guru stocks have reached their 52-week highs.

TransDigm Group Inc. (TDG) reached the 52-week high of $462.78

TransDigm Group Inc. is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. TransDigm manufactures products for electronic, fluid, power, and mechanical motion control onboard commercial and military aircraft and helicopters. It also supplies products used for cabin structures, lighting, laminates, pallets and a host of other applications. In fiscal 2017, the company generated roughly 70% of its sales from commercial

19 Views    yifan900    2019-04-09 15:30

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