19,473 Shares in Automatic Data Processing, Inc. $ADP Acquired by Kinloch Capital LLC

Key Points

• Kinloch Capital LLC acquired 19,473 shares of ADP during the second quarter, valued at approximately $4.36 million. Institutional investors collectively own 80.03% of the company.
• ADP reported quarterly adjusted earnings of $2.64 per share and revenue of $5.47 billion, exceeding analyst expectations; revenue increased 6.8% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, while ADP announced a quarterly dividend of $1.70 per share, yielding about 2.4% annually.

Kinloch Capital LLC bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 19,473 shares of the business services provider's stock, valued at approximately $4,361,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Horizon Investments LLC lifted its holdings in Automatic Data Processing by 34.1% in the fourth quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider's stock worth $6,725,000 after purchasing an additional 6,655 shares during the period. Compass Capital Management Inc. increased its stake in Automatic Data Processing by 3.0% during the 4th quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock valued at $52,400,000 after buying an additional 5,899 shares during the period. Northwestern Mutual Wealth Management Co. acquired a new position in Automatic Data Processing during the 2nd quarter valued at about $13,283,000. DNB Asset Management AS raised its position in shares of Automatic Data Processing by 11.1% during the 4th quarter. DNB Asset Management AS now owns 152,697 shares of the business services provider's stock worth $39,278,000 after buying an additional 15,287 shares in the last quarter. Finally, Fulton Bank N.A. raised its position in shares of Automatic Data Processing by 192.0% during the 2nd quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock worth $1,605,000 after buying an additional 4,711 shares in the last quarter. Institutional investors own 80.03% of the company's stock.

Wall Street Analysts Forecast Growth

ADP has been the subject of several recent analyst reports. Mizuho decreased their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Cantor Fitzgerald boosted their target price on Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a report on Monday, August 3rd. Jefferies Financial Group cut their target price on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Stifel Nicolaus increased their price target on Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Finally, TD Cowen lifted their price target on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. Three 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 company's stock. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of "Hold" and an average target price of $273.50.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $283.01 on Tuesday. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $307.80. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock has a market cap of $112.43 billion, a PE ratio of 25.87 and a beta of 0.81. The company's 50-day moving average price is $250.86 and its two-hundred day moving average price is $226.50.

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

Automatic Data Processing Announces Dividend

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

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 798 shares of the company's stock in a transaction 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 transaction, the vice president owned 13,193 shares of the company's stock, valued at approximately $3,694,040. This represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the 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 sale, the vice president owned 18,442 shares of the company's stock, valued at $5,158,227.40. This trade represents a 0.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 3,332 shares of company stock valued at $898,211 over the last 90 days. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing 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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