Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Automatic Data Processing, Inc.    ADP

AUTOMATIC DATA PROCESSING, INC.

(ADP)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Two More Activist Funds Build Stakes in ADP

share with twitter share with LinkedIn share with facebook
05/15/2018 | 03:27pm EDT

By Cara Lombardo and David Benoit

Two activist hedge funds have built small stakes in Automatic Data Processing Inc., according to people familiar with the matter, adding pressure to the payroll-processing firm as it tries to jumpstart growth.

The two investors, D.E. Shaw Group and Sachem Head Capital Management, haven't decided whether they would try to push for changes at the company, the people said, but they have met separately with ADP's management and are closely tracking its performance. ADP earlier this month increased its revenue guidance for its fiscal year, which ends June 30, and its shares are up about 8% so far this year. The size of two firms' stakes is unclear.

D.E. Shaw and Sachem Head, which aren't working together, built their ADP stakes ahead of a key meeting for the company next month. The Roseland, N.J., company plans to hold an analyst day in mid-June, where it is expected to detail its plans for new growth.

The two investment firms join William Ackman, another activist investor, as investors in ADP. Last year, Mr. Ackman's Pershing Square Capital Management LP, which owns about 7.2% of ADP, including derivatives, lost a proxy fight by a wide margin for three ADP board seats. Mr. Ackman had argued the company fell behind technology-focused startups and needed to improve its margins, which ADP insisted it was already doing.

ADP is Pershing Square's largest investment. Mr. Ackman and Pershing Square analyst Charles Korn said on Pershing Square's earnings call Tuesday that ADP accelerated its bookings and did a better job retaining business in its latest quarter and stands to benefit from the tax-law overhaul, an accounting rule change and rising interest rates. Pershing Square bought the ADP stock about 10 months ago at an average cost of about $104, Mr. Ackman said, and it has risen 22% to $126.68.

Other activist hedge funds also have looked at ADP recently, as some believe Pershing Square had the right ideas but misstepped in the proxy fight, the people said, but those funds so far haven't gotten involved.

Sachem Head was founded by Scott Ferguson, who previously worked at Pershing Square. D.E. Shaw, which has historically focused on computer-driven quantitative trading, has only recently started to dabble in activism. Earlier this year, it shook up the board at Lowe's Cos.

Stocks mentioned in the article
ChangeLast1st jan.
AUTOMATIC DATA PROCESSING, INC. -0.23% 139.26 Delayed Quote.-18.32%
CHANGE INC. 16.85% 10400 End-of-day quote.257.63%
JUST GROUP PLC 8.06% 55 Delayed Quote.-30.38%
SQUARE, INC. 3.00% 143.19 Delayed Quote.128.88%
WILL GROUP, INC. -1.15% 690 End-of-day quote.-44.89%
share with twitter share with LinkedIn share with facebook
All news about AUTOMATIC DATA PROCESSING,
08:30aMEDIA ALERT : July 2020 ADP Canada National Employment Report to be released on ..
AQ
06:07aAUTOMATIC DATA PROCESSING INC : Entry into a Material Definitive Agreement, Othe..
AQ
08/05AUTOMATIC DATA PROCESSING : Management's Discussion and Analysis of Financial Co..
AQ
08/05Financials Up On Economic-Stimulus Bets, Earnings -- Financials Roundup
DJ
08/05Consumer Cos Up As Investors Bet On Stimulus Bill -- Consumer Roundup
DJ
08/05AUTOMATIC DATA PROCESSING : ADP Declares Regular Quarterly Dividend
PR
08/05Industrials Up On Stimulus Hopes -- Industrials Roundup
DJ
08/05AUTOMATIC DATA PROCESSING INC : Amendments to Articles of Inc. or Bylaws; Change..
AQ
08/05AUTOMATIC DATA PROCESSING : U.S. Private Sector Adds 167,000 Jobs in July
DJ
08/05ADP NATIONAL EMPLOYMENT REPORT : Private Sector Employment Increased by 167,000 ..
PR
More news
Financials (USD)
Sales 2021 14 168 M - -
Net income 2021 2 127 M - -
Net cash 2021 695 M - -
P/E ratio 2021 28,2x
Yield 2021 2,61%
Capitalization 60 015 M 60 015 M -
EV / Sales 2021 4,19x
EV / Sales 2022 3,88x
Nbr of Employees 58 000
Free-Float 67,2%
Chart AUTOMATIC DATA PROCESSING, INC.
Duration : Period :
Automatic Data Processing, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AUTOMATIC DATA PROCESSING,
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 148,50 $
Last Close Price 139,26 $
Spread / Highest target 30,0%
Spread / Average Target 6,64%
Spread / Lowest Target -11,0%
EPS Revisions
Managers
NameTitle
Carlos A. Rodriguez President, Chief Executive Officer & Director
John P. Jones Non-Executive Chairman
Kathleen Anne Winters Chief Financial Officer & Vice President
Robert Glenn Hubbard Independent Director
Richard T. Clark Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AUTOMATIC DATA PROCESSING, INC.-18.32%60 015
ACCENTURE9.11%146 166
TATA CONSULTANCY SERVICES4.29%113 325
INTERNATIONAL BUSINESS MACHINES CORPORATION-5.48%112 836
VMWARE, INC.-7.29%58 969
INFOSYS LIMITED30.10%54 191