1ST Source Bank Purchases Shares of 27,010 Automatic Data Processing, Inc. $ADP

Key Points

• 1ST Source Bank purchased 27,010 ADP shares during the second quarter, valued at approximately $6.05 million. Institutional investors and hedge funds collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.5% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

1ST Source Bank purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 27,010 shares of the business services provider's stock, valued at approximately $6,049,000.

A number of other institutional investors and hedge funds have also modified their holdings of ADP. Brighton Jones LLC boosted its stake in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after purchasing an additional 4,808 shares during the period. Bison Wealth LLC grew its position in Automatic Data Processing by 22.8% in the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after purchasing an additional 681 shares during the last quarter. Schnieders Capital Management LLC. increased its holdings in shares of Automatic Data Processing by 21.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after purchasing an additional 225 shares during the period. Osterweis Capital Management Inc. acquired a new position in shares of Automatic Data Processing during the second quarter valued at about $108,000. Finally, Diversify Advisory Services LLC raised its position in shares of Automatic Data Processing by 17.5% during the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after buying an additional 815 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

ADP opened at $272.96 on Monday. The firm's 50-day simple moving average is $245.08 and its 200-day simple moving average is $225.27. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $310.08. The firm has a market cap of $108.44 billion, a price-to-earnings ratio of 24.95 and a beta of 0.81.

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, topping 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 company's revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the business posted $2.26 earnings per share. 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 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on ADP shares. Guggenheim lifted their target price on Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Cantor Fitzgerald upped their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. Stifel Nicolaus raised their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Mizuho lowered their price objective on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Finally, TD Cowen upped their target price on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research note on Monday, July 6th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and a consensus target price of $273.50.

Insider Transactions at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the 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 sale, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company's stock.

About Automatic Data Processing

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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