Grab This Bargain Even Cheaper Than Director Swan Did

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on May 7, Automatic Data Processing Inc.'s Director, Robert Holmes Swan, invested $745,694.95 into 3,619 shares of ADP, for a cost per share of $206.05. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Wednesday, bargain hunters could buy shares of Automatic Data Processing Inc. (Symbol: ADP) and achieve a cost basis even cheaper than Swan, with shares changing hands as low as $204.56 per share. Automatic Data Processing Inc. shares are currently trading off about 2.3% on the day. The chart below shows the one year performance of ADP shares, versus its 200 day moving average:

Looking at the chart above, ADP's low point in its 52 week range is $188.16 per share, with $329.9295 as the 52 week high point — that compares with a last trade of $208.88. By comparison, below is a table showing the prices at which ADP insider buying was recorded over the last six months:

The current annualized dividend paid by Automatic Data Processing Inc. is $6.8/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/12/2026. Below is a long-term dividend history chart for ADP, which can be of good help in judging whether the most recent dividend with approx. 3.2% annualized yield is likely to continue.

According to the ETF Finder at ETF Channel, ADP makes up 4.24% of the Invesco QQQ Low Volatility ETF (Symbol: QQLV) which is trading higher by about 0.3% on the day Wednesday. (see other ETFs holding ADP).

Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »

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