39,376 Shares in Automatic Data Processing, Inc. $ADP Purchased by Puzo Michael J

Key Points

• Puzo Michael J purchased 39,376 ADP shares worth approximately $8.8 million in the second quarter, making ADP its 17th-largest holding. Institutional investors collectively own 80.03% of the company.
• ADP reported quarterly EPS of $2.64, exceeding estimates by $0.05, while revenue rose 6.8% year over year to $5.47 billion. The company issued FY 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70, or $6.80 annually, representing a 2.5% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Puzo Michael J 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 39,376 shares of the business services provider's stock, valued at approximately $8,818,000. Automatic Data Processing accounts for approximately 2.3% of Puzo Michael J's investment portfolio, making the stock its 17th biggest holding.

Other hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in Automatic Data Processing in the 2nd quarter worth approximately $8,097,229,000. State Street Corp lifted its holdings in shares of Automatic Data Processing by 0.7% during the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock worth $4,903,769,000 after buying an additional 133,039 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Automatic Data Processing by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock valued at $2,977,777,000 after acquiring an additional 136,876 shares during the period. Capital Research Global Investors boosted its position in shares of Automatic Data Processing by 4.6% in the fourth quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock valued at $2,159,088,000 after acquiring an additional 372,413 shares during the period. Finally, Wellington Management Group LLP grew its stake in shares of Automatic Data Processing by 8.0% in the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider's stock worth $1,896,944,000 after acquiring an additional 544,210 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Insider Activity

In other news, VP David Kwon sold 2,414 shares of the firm's stock in a transaction dated Thursday, July 30th. The shares were 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $277.22 on Thursday. The firm has a market capitalization of $110.13 billion, a PE ratio of 25.34 and a beta of 0.81. 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, Inc. has a 1-year low of $188.16 and a 1-year high of $310.08. The business's 50 day moving average is $247.50 and its 200-day moving average is $225.70.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. The business had revenue of $5.47 billion during the quarter, compared to analyst estimates 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 period in the prior year, the company posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Sell-side analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Announces Dividend

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

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Argus dropped their target price on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. Robert W. Baird decreased their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Jefferies Financial Group decreased their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Mizuho dropped their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Finally, BMO Capital Markets upped their price objective 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. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $273.50.

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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