Napa Wealth Management Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Napa Wealth Management acquired 1,685 shares of Automatic Data Processing, Inc. (NASDAQ: ADP), valued at approximately $515,000, according to their recent Form 13F filing.
• Automatic Data Processing reported earnings per share (EPS) of $2.26 for the last quarter, exceeding analysts' estimates of $2.23, with a revenue of $5.13 billion.
• The company announced a quarterly dividend of $1.54, with a total annualized dividend yield of 2.0%, payable on October 1st.

Napa Wealth Management bought a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The firm bought 1,685 shares of the business services provider's stock, valued at approximately $515,000.

Other hedge funds have also modified their holdings of the company. AlphaCore Capital LLC acquired a new stake in Automatic Data Processing during the 1st quarter valued at approximately $688,000. Golden State Wealth Management LLC grew its stake in Automatic Data Processing by 29.6% during the 1st quarter. Golden State Wealth Management LLC now owns 565 shares of the business services provider's stock valued at $173,000 after purchasing an additional 129 shares in the last quarter. GAMMA Investing LLC grew its stake in Automatic Data Processing by 13.8% during the 1st quarter. GAMMA Investing LLC now owns 9,495 shares of the business services provider's stock valued at $2,901,000 after purchasing an additional 1,148 shares in the last quarter. Toronto Dominion Bank grew its stake in Automatic Data Processing by 10.2% during the 4th quarter. Toronto Dominion Bank now owns 236,707 shares of the business services provider's stock valued at $69,290,000 after purchasing an additional 21,910 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC grew its stake in Automatic Data Processing by 8.9% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 250,836 shares of the business services provider's stock valued at $76,638,000 after purchasing an additional 20,467 shares in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ADP. UBS Group lowered their price objective on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research note on Friday, June 13th. Morgan Stanley raised their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a research report on Thursday, July 10th. TD Securities lifted their target price on Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research report on Wednesday, May 21st. Finally, Stifel Nicolaus lifted their target price 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. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $317.00.

Automatic Data Processing Stock Performance

NASDAQ:ADP traded down $0.36 during midday trading on Wednesday, reaching $303.09. 1,081,540 shares of the company traded hands, compared to its average volume of 1,727,372. Automatic Data Processing, Inc. has a twelve month low of $267.79 and a twelve month high of $329.93. The firm has a market capitalization of $122.76 billion, a price-to-earnings ratio of 30.37, a price-to-earnings-growth ratio of 2.78 and a beta of 0.81. 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 company has a fifty day moving average price of $304.94 and a 200 day moving average price of $305.58.

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

Automatic Data Processing Dividend Announcement

The business also recently disclosed 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 is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.0%. Automatic Data Processing's payout ratio is currently 61.72%.

About Automatic Data Processing

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.