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3 insiders sold Automatic Data Processing's stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10% each.

Automatic Data Processing (NASDAQ:ADP) provides technology-based outsourcing solutions to employers and vehicle retailers and manufacturers worldwide.

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Insider selling during the last 30 days

Here is a table of Automatic Data Processing's insider activity during the last 30 days.

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
R. Glenn HubbardDirectorJune 425,974YesNo28,936
Mark BenjaminVPMay 1410,000YesNo23,063
Eric FastDirectorMay 1210,000YesNo23,255 shares30.1%

There have been 45,974 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Automatic Data Processing's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
June 201425,9740
May 201427,4850
April 201400
March 201429,4640
February 20146,5900
January 2014234,8700
December 201300
November 201335,2570
October 201300
September 201300
August 201316,5710
July 201300
June 201300
May 201323,4240
April 201300
March 2013108,6490
February 201310,0690
January 201328,6900

There have been 547,043 shares sold and there have been zero shares purchased by insiders since January 2013.


Automatic Data Processing reported the fiscal 2014 third-quarter, which ended March 31, financial results on April 30 with the following highlights:

Revenue$3.3 billion
Net income$521.6 million
Cash$1.7 billion
Debt$12.1 million

The three insiders sold their shares after these results.

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(Source: Earnings presentation)


Automatic Data Processing's fiscal 2014 guidance is as follows:

Revenue growth~8%
EPS growth from continuing operations~9%

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(Source: Earnings presentation)


Automatic Data Processing's competitors include Insperity (NYSE:NSP), Paychex (NASDAQ:PAYX), and TriNet Group (NYSE:TNET). Here is a table comparing these companies.

Market Cap:38.38B851.56M14.99B1.86B
Qtrly Rev Growth (yoy):
Gross Margin:0.490.170.720.19
Operating Margin:
Net Income:1.44B27.61M605.10M11.30M
PEG (5 yr expected):2.442.042.501.27

Automatic Data Processing has the second-highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares



Only Automatic Data Processing has seen intensive insider selling during the last 30 days.


There have been three different insiders selling Automatic Data Processing, and there have not been any insiders buying Automatic Data Processing during the last 30 days. All three of these insiders decreased their holdings by more than 10% each. Automatic Data Processing has an insider ownership of 0.18%.

Automatic Data Processing has a $61 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $61 price target. I would place a stop loss at $83, which is the all-time high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in ADP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.