3,661 Automatic Data Processing, Inc. $ADP Shares Sold by Verdence Capital Advisors LLC

Key Points

• Verdence Capital Advisors cut its ADP stake by 48%. The firm sold 3,661 shares in the third quarter and retained 3,967 shares valued at approximately $1.02 million.
• ADP exceeded quarterly earnings and revenue expectations. The company reported $2.82 in EPS versus the $2.77 consensus and revenue of $5.49 billion, up 6.1% year over year.
• Analyst sentiment remains mixed. ADP has a consensus “Hold” rating and an average price target of $280.64, while the company pays a $1.70 quarterly dividend, representing a 2.4% yield.

Verdence Capital Advisors LLC lessened its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 48.0% in the third quarter, according to its most recent filing with the SEC. The firm owned 3,967 shares of the business services provider's stock after selling 3,661 shares during the quarter. Verdence Capital Advisors LLC's holdings in Automatic Data Processing were worth $1,024,000 as of its most recent SEC filing.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. TD Cowen upped their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a report on Monday, July 6th. Morgan Stanley increased their target price on Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. UBS Group increased their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Citigroup lifted their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Finally, Cantor Fitzgerald lifted their target price on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of "Hold" and a consensus price target of $280.64.

Automatic Data Processing Stock Down 2.6%

Shares of ADP stock opened at $285.37 on Thursday. The stock's 50 day simple moving average is $276.79 and its 200 day simple moving average is $240.57. 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 $309.40. The company has a market capitalization of $113.08 billion, a price-to-earnings ratio of 26.09, a PEG ratio of 2.75 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, topping the consensus estimate of $2.77 by $0.05. The firm had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The company's revenue for the quarter was up 6.1% on a year-over-year basis. During the same period in the previous year, the company earned $2.49 EPS. As a group, research analysts predict that Automatic Data Processing, Inc. will post 12.27 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's payout ratio is presently 62.16%.

Insider Activity

In related news, VP Brian Michaud sold 120 shares of the company'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 directly owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their position. 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, CEO Maria Black sold 29,810 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,359 shares of company stock valued at $8,809,422 over the last three months. Corporate insiders own 0.15% of the company's stock.

Key Headlines Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Fiscal Q1 results exceeded expectations. ADP reported adjusted earnings of $2.82 per share, above the $2.77 consensus estimate, while revenue increased 6.1% year over year to $5.49 billion, slightly ahead of forecasts. Earnings rose from $2.49 per share in the prior-year quarter. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. ADP now expects adjusted EPS growth of approximately 10% to 12% and lifted its client funds interest revenue outlook to $1.59 billion-$1.61 billion. Stronger segment performance and higher interest income supported the improved forecast. ADP Fiscal 2027 Outlook
• Positive Sentiment: ADP expanded its distribution strategy. A new agreement with PNC Bank will embed ADP payroll, HR, benefits, time, insurance and retirement services into PNC’s digital banking platform for small businesses, potentially improving customer acquisition and retention. PNC Bank and ADP Announce Embedded Payroll Solution
• Neutral Sentiment: Analyst views remained mixed. Guggenheim raised its price target to $340, while UBS maintained a Hold rating. These actions suggest upside recognition from some analysts but limited conviction overall.
• Negative Sentiment: Jefferies retained an Underperform rating. Although it increased its price target from $225 to $250, the new target still implies roughly 12.4% downside based on the referenced share price. The cautious rating and ADP’s relatively elevated valuation may have encouraged profit-taking after the earnings release.

Automatic Data Processing Profile

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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