206,544 Shares in Automatic Data Processing, Inc. $ADP Purchased by The Manufacturers Life Insurance Company

Key Points

• The Manufacturers Life Insurance Company acquired 206,544 ADP shares worth approximately $46.3 million, while institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations with adjusted EPS of $2.64 and revenue of $5.47 billion, representing 6.8% year-over-year revenue growth. Analysts expect full-year EPS of about $12.26.
• ADP declared a quarterly dividend of $1.70 per share, or $6.80 annualized, yielding approximately 2.4%. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

The Manufacturers Life Insurance Company bought a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 206,544 shares of the business services provider's stock, valued at approximately $46,256,000. The Manufacturers Life Insurance Company owned 0.05% of Automatic Data Processing as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Automatic Data Processing during the second quarter worth approximately $8,097,229,000. Deutsche Bank AG acquired a new stake in shares of Automatic Data Processing in the second quarter worth $994,937,000. Northwestern Mutual Wealth Management Co. increased its stake in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after acquiring an additional 3,415,576 shares during the period. Bank of New York Mellon Corp acquired a new position in Automatic Data Processing in the 2nd quarter valued at approximately $725,513,000. Finally, Cardano Risk Management B.V. raised its holdings in Automatic Data Processing by 950.1% in the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after acquiring an additional 3,223,855 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Trading Down 0.5%

ADP stock opened at $281.39 on Thursday. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $305.31. 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 business's 50 day moving average is $253.33 and its 200-day moving average is $227.18. The firm has a market cap of $111.79 billion, a P/E ratio of 25.72 and a beta of 0.81.

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

Automatic Data Processing Announces Dividend

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

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. Morgan Stanley boosted their price objective on 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. TD Cowen lifted their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research note on Monday, July 6th. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Argus dropped their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Finally, Mizuho reduced their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $273.50.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of Automatic Data Processing 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 completion of the transaction, the vice president directly owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. This trade represents a 19.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. 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 transaction of $33,564.00. Following the completion of the sale, the vice president owned 18,442 shares in the company, valued at $5,158,227.40. This represents a 0.65% 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 three months, insiders have sold 3,332 shares of company stock valued at $898,211. Company insiders own 0.20% of the company's stock.

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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