David Foskett, Corporate Vice President of Automatic Data Processing Inc. (NASDAQ:ADP), recently sold 1,004 shares of common stock, totaling approximately $290,443. The shares were sold at an average price of $289.29 each. The transaction occurred as ADP trades near $288.40, with a substantial market capitalization of $117.45 billion. According to InvestingPro analysis, the stock currently trades above its Fair Value, with notably high earnings and EBITDA multiples. This transaction was conducted under a pre-established Rule 10b5-1 trading plan, which Foskett adopted in September 2024. Following this sale, Foskett retains ownership of 5,957.67 shares in the company.
In a related transaction, Foskett exercised stock options to acquire 1,385 shares at a price of $138.53 per share, totaling approximately $191,864. These transactions reflect Foskett's ongoing management of his holdings in the company.
In other recent news, Automatic Data Processing (ADP) reported a 7% increase in revenue and a 12% rise in earnings per share in the first quarter, surpassing market expectations. This robust performance was attributed to the successful acquisition of WorkForce Software (ETR:SOWGn) and solid results in the Employer Services and Professional Employer Organization segments. Furthermore, ADP has raised its annual dividend rate, marking its 50th consecutive year of dividend growth, a milestone that places the company among the prestigious 'Dividend Kings'.
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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