16,601 Shares in Automatic Data Processing, Inc. $ADP Acquired by D.B. Root & Company LLC

Key Points

• D.B. Root & Company LLC acquired 16,601 ADP shares during the second quarter, valued at approximately $3.7 million. Institutional investors and hedge funds collectively own 80.03% of ADP.
• Analyst sentiment remains mostly neutral: ADP has an average “Hold” rating and a consensus price target of $273.50, despite several recent target increases.
• ADP exceeded quarterly earnings expectations, reporting $2.64 in EPS and $5.47 billion in revenue, while announcing a quarterly dividend of $1.70 per share, equivalent to a 2.4% annualized yield.

D.B. Root & Company LLC purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 16,601 shares of the business services provider's stock, valued at approximately $3,718,000. Automatic Data Processing accounts for about 0.8% of D.B. Root & Company LLC's holdings, making the stock its 20th largest holding.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Imprint Wealth LLC purchased a new stake in Automatic Data Processing during the third quarter worth approximately $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at $26,000. Bard Associates Inc. purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at $28,000. Whipplewood Advisors LLC lifted its holdings in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after acquiring an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in shares of Automatic Data Processing during the 4th quarter valued at $33,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of the business's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.20% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on ADP. UBS Group increased their price target on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Jefferies Financial Group reduced their price objective on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Robert W. Baird decreased their target price on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Morgan Stanley upped their target price on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Finally, Citigroup increased their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Price Performance

Shares of ADP stock opened at $280.81 on Monday. The firm has a fifty day simple moving average of $249.66 and a 200-day simple moving average of $226.17. The company has a market capitalization of $111.56 billion, a PE ratio of 25.67 and a beta of 0.81. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $308.89. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter in the previous year, the firm posted $2.26 EPS. The firm'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 anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing Company Profile

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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