188,259 Automatic Data Processing, Inc. $ADP Shares Sold by Cooke & Bieler LP

Key Points

• Cooke & Bieler LP cut its ADP stake by 57.2% in the third quarter, selling 188,259 shares and retaining 140,819 shares valued at approximately $36.3 million. Institutional investors collectively own 80.03% of ADP.
• ADP reported quarterly revenue of $5.47 billion and EPS of $2.64, exceeding analyst expectations, while revenue increased 6.8% year over year. The company maintained FY 2027 EPS guidance of $12.12–$12.34.
• ADP’s shares opened at $294.50, near their 12-month high, and the company pays a quarterly dividend of $1.70, equivalent to an annualized $6.80 and a 2.3% yield. Analysts remain broadly neutral, with an average “Hold” rating and a $273.50 price target.

Cooke & Bieler LP trimmed its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 57.2% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 140,819 shares of the business services provider's stock after selling 188,259 shares during the quarter. Cooke & Bieler LP's holdings in Automatic Data Processing were worth $36,340,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in Automatic Data Processing during the second quarter worth approximately $8,097,229,000. Bank of America Corp DE purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $1,231,175,000. Deutsche Bank AG acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $994,937,000. Bank of New York Mellon Corp acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $725,513,000. Finally, Legal & General Group Plc acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $562,425,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Automatic Data Processing news, VP Brian Michaud sold 120 shares of the business's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the transaction, the vice president directly owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 2,414 shares of the company's stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the transaction, the vice president owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 33,773 shares of company stock valued at $9,450,629. 0.15% of the stock is owned by corporate insiders.

Automatic Data Processing Trading Up 0.6%

Shares of ADP stock opened at $294.50 on Thursday. The business's 50 day moving average is $274.19 and its two-hundred day moving average is $244.34. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $296.14. The company has a market capitalization of $116.70 billion, a P/E ratio of 26.92, a price-to-earnings-growth ratio of 2.65 and a beta of 0.83. 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 earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The business had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the company posted $2.26 earnings per share. The company's revenue for the quarter was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities analysts forecast that Automatic Data Processing, Inc. will post 12.27 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. BMO Capital Markets increased their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. Morgan Stanley boosted their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Stifel Nicolaus boosted their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. Finally, Citigroup raised 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. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $273.50.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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