Shares of Automatic Data Processing, Inc. (NASDAQ: ADP) climbed 16.9% in July, according to data from S&P Global Market Intelligence, after the HR management software and services specialist announced solid fiscal fourth-quarter 2017 results, and following news that activist investor Bill Ackman’s Pershing Square Capital Management increased its stake in the company.On the former, ADP’s revenue last quarter climbed 6% year over year to $3.1 billion, including 7% organic growth, while adjusted earnings per diluted share from continuing operations fell 4% over the same period to $0.66. ADP CEO Carlos Rodriguez noted that the company ended its fiscal year in line with expectations.But investors were much more excited by the subsequent news that Ackman’s Pershing Square had built an 8% stake in ADP, leaving the market hopeful that the activist investor would step in to bolster the stock price. Shares climbed 9% in a single day on July 27 as a result.Continue reading
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