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In recent transactions disclosed by Automatic Data Processing Inc. (NASDAQ:ADP), a $125 billion market cap professional services company, Corporate Vice President Joseph DeSilva executed a sale of company stock. According to InvestingPro analysis, ADP currently trades at a P/E ratio of 31.4, suggesting premium valuation levels. On June 13, DeSilva sold 1,381 shares at a price of $307.07 per share, resulting in a total transaction value of $424,063. This sale was made under a Rule 10b5-1 trading plan, which had been adopted in September 2024. Following this transaction, DeSilva holds 15,760.918 shares of ADP stock.
Additionally, on June 12, DeSilva disposed of 908.735 shares at $309.75 per share in a separate transaction, resulting in a total value of $281,480. These transactions reflect DeSilva’s ongoing management of his holdings in the company.
In other recent news, Automatic Data Processing (ADP) presented its medium-term financial targets, forecasting revenue growth of 6-7% and earnings per share growth of 9-11%. These projections were discussed during ADP’s investor day, where the company also outlined strategic priorities, including global expansion through acquisitions and partnerships, and investments in artificial intelligence. Following the investor day, Mizuho (NYSE:MFG) raised ADP’s stock price target to $332, citing a strong outlook and improved product execution. Conversely, UBS lowered its price target to $315, noting a revised growth outlook with tempered expectations for ADP’s Professional Employer Organization segment. RBC Capital and Stifel both maintained their ratings on ADP, with RBC reiterating a Sector Perform rating and Stifel holding a Hold rating, reflecting a cautious stance on the company’s growth strategy. The ADP National Employment Report, released recently, revealed that the U.S. private sector added 37,000 jobs in May, with annual pay rising by 4.5% compared to the previous year. This report, based on payroll data, highlighted job growth in the leisure and hospitality sector and regional variations in employment changes. The employment report is part of ADP’s ongoing efforts to provide insights into the labor market.
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