Twin Tree Management LP Makes New $3.21 Million Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Twin Tree Management LP acquired 10,499 shares of Automatic Data Processing, Inc. (ADP), valued at approximately $3.2 million, during the first quarter.
• Automatic Data Processing reported Q3 earnings of $2.26 per share, beating estimates, with a revenue of $5.13 billion, up 6.3% year-over-year.
• The company announced a quarterly dividend of $1.54 per share, resulting in an annualized yield of 2.0%, with a dividend payout ratio of 61.72%.

Twin Tree Management LP bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 10,499 shares of the business services provider's stock, valued at approximately $3,208,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Centric Wealth Management increased its position in shares of Automatic Data Processing by 2.3% in the first quarter. Centric Wealth Management now owns 11,251 shares of the business services provider's stock valued at $3,438,000 after acquiring an additional 256 shares during the last quarter. Connecticut Wealth Management LLC grew its position in shares of Automatic Data Processing by 5.3% in the 1st quarter. Connecticut Wealth Management LLC now owns 8,131 shares of the business services provider's stock valued at $2,484,000 after acquiring an additional 410 shares during the period. Junto Capital Management LP grew its position in shares of Automatic Data Processing by 71.3% in the 1st quarter. Junto Capital Management LP now owns 168,250 shares of the business services provider's stock valued at $51,405,000 after acquiring an additional 70,026 shares during the period. Pinnacle Wealth Planning Services Inc. grew its position in shares of Automatic Data Processing by 5.3% in the 1st quarter. Pinnacle Wealth Planning Services Inc. now owns 1,615 shares of the business services provider's stock valued at $493,000 after acquiring an additional 81 shares during the period. Finally, Activest Wealth Management grew its position in shares of Automatic Data Processing by 2,600.0% in the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after acquiring an additional 78 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

NASDAQ:ADP traded down $5.22 during trading hours on Friday, reaching $295.97. 1,808,091 shares of the company were exchanged, compared to its average volume of 1,717,984. The company has a market capitalization of $119.88 billion, a P/E ratio of 29.66, a P/E/G ratio of 2.74 and a beta of 0.82. Automatic Data Processing, Inc. has a 1-year low of $267.79 and a 1-year high of $329.93. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The business has a 50 day moving average of $304.39 and a 200 day moving average of $305.33.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. The business had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The firm's quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's dividend payout ratio is currently 61.72%.

Analyst Upgrades and Downgrades

ADP has been the topic of a number of recent analyst reports. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research report on Thursday, July 10th. UBS Group lowered their price target on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research report on Friday, June 13th. Stifel Nicolaus boosted their price target on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Mizuho boosted their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Finally, Dbs Bank raised Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $317.00.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.