Brian L. Michaud, Corporate Vice President at Automatic Data Processing Inc. (NASDAQ: ), recently sold shares 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, for a total of approximately $106,366. The transaction comes as ADP, a prominent player in the professional services industry, trades near $292 with a market cap of $119 billion. According to InvestingPro analysis, the stock appears to be currently trading above its fair value. This transaction was executed under a predetermined Rule 10b5-1 trading plan, adopted in September 2024, which permits scheduled trading.
Following this sale, Michaud holds 13,705.72 shares in direct ownership. Furthermore, 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), beating market expectations. This performance was attributed to the successful acquisition of WorkForce Software (ETR:) and strong results in the segments Service for employers and Professional organizations of employers. The company also increased its annual dividend rate, marking its 50th consecutive year of dividend growth, a milestone that places ADP among the prestigious ‘Dividend Kings’.
Meanwhile, analysts at TD Cowen, Stifel and RBC Capital maintained their Hold and Sector Perform ratings on ADP stock, while raising their price targets, reflecting the company’s consistent performance and strong bookings. ADP updated its fiscal 2025 revenue growth projection to 6-7%, an increase of approximately $200 million, attributed to the acquisition of WorkForce Software and strong first quarter results. However, the expected EBIT margin improvement has been revised down from a 60-80 basis point year-over-year increase to 30-50 basis points, representing approximately $50 million in acquisition-related headwinds.
In terms of executive changes, John C. Ayala, current chief operating officer, is slated 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 operating officer. Finally, ADP introduced ADP Lyric, a new global human capital management platform. These are recent developments that are shaping ADP’s business and future trajectory.
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