Automatic Data Processing (NASDAQ:ADP) VP David Kwon Sells 798 Shares

Key Points

• ADP Vice President David Kwon sold 798 shares at an average price of $280, generating $223,440. The sale, made under a pre-arranged Rule 10b5-1 plan, reduced his holdings by 5.7% to 13,193 shares.
• ADP recently reported quarterly results that exceeded expectations, with EPS of $2.64 and revenue of $5.47 billion, up 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, representing a 2.4% annualized yield.
• ADP shares traded at $283.01, while analysts’ consensus rating remained “Hold” with an average price target of $273.50. Institutional investors own approximately 80.03% of the company’s stock.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP David Kwon sold 798 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the sale, the vice president owned 13,193 shares in the company, valued at approximately $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

David Kwon also recently made the following trade(s):

• On Thursday, July 30th, David Kwon sold 2,414 shares of Automatic Data Processing stock. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68.

Automatic Data Processing Price Performance

ADP traded up $2.20 during midday trading on Monday, hitting $283.01. The company had a trading volume of 2,448,312 shares, compared to its average volume of 3,067,762. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $307.80. The company has a market capitalization of $112.43 billion, a PE ratio of 25.87 and a beta of 0.81. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The firm's 50-day simple moving average is $249.66 and its 200-day simple moving average is $226.17.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same period in the prior year, the business earned $2.26 earnings per share. Automatic Data Processing's quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities research analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ADP. California State Teachers Retirement System lifted its stake in Automatic Data Processing by 22,166.8% in the second quarter. California State Teachers Retirement System now owns 140,971,822 shares of the business services provider's stock valued at $31,570,640,000 after buying an additional 140,338,719 shares during the period. BlackRock Inc. bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at about $8,097,229,000. State Street Corp raised its position in shares of Automatic Data Processing by 0.7% in the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock valued at $4,903,769,000 after acquiring an additional 133,039 shares during the period. Geode Capital Management LLC raised its position in shares of Automatic Data Processing by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock valued at $2,977,777,000 after acquiring an additional 136,876 shares during the period. Finally, Capital Research Global Investors boosted its stake in Automatic Data Processing by 4.6% during the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock worth $2,159,088,000 after acquiring an additional 372,413 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently issued reports on ADP shares. TD Cowen upped their price target on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research note on Monday, July 6th. Guggenheim lifted their price objective on Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Citigroup boosted their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Wells Fargo & Company upped their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Finally, Stifel Nicolaus raised their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and a consensus target price of $273.50.

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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