4,513 Shares in Automatic Data Processing, Inc. $ADP Acquired by Pavion Blue Capital LLC

Key Points

• Pavion Blue Capital acquired 4,513 shares of Automatic Data Processing valued at approximately $1.01 million, while institutional investors collectively own 80.03% of ADP.
• Analysts raised their price targets to between $283 and $310, but the consensus remains a “Hold” rating with a $273.50 target price.
• ADP exceeded quarterly expectations with $2.64 in EPS and $5.47 billion in revenue, up 6.8% year over year, and declared a quarterly dividend of $1.70 per share.

Pavion Blue Capital LLC purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 4,513 shares of the business services provider's stock, valued at approximately $1,011,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Imprint Wealth LLC purchased a new position in shares of Automatic Data Processing during the third quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Automatic Data Processing in the 4th quarter valued at $26,000. Bard Associates Inc. purchased a new stake in Automatic Data Processing in the 4th quarter valued at $28,000. Whipplewood Advisors LLC raised its position in Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after purchasing an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new stake in Automatic Data Processing during the 4th quarter worth $33,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analysts Set New Price Targets

Several brokerages have issued reports on ADP. Morgan Stanley raised their price objective on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Wells Fargo & Company upped their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Stifel Nicolaus increased their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Guggenheim raised their price target on Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Finally, Cantor Fitzgerald boosted their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing Trading Down 2.5%

Shares of Automatic Data Processing stock opened at $266.06 on Tuesday. The firm has a market cap of $105.69 billion, a price-to-earnings ratio of 24.32 and a beta of 0.81. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $310.08. The company's 50-day simple moving average is $245.82 and its 200-day simple moving average is $225.35. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data 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. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter last year, the firm earned $2.26 earnings per share. The firm's revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the firm's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the sale, the vice president directly owned 9,660 shares of the company's stock, valued at $2,565,889.20. This trade represents a 19.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by corporate 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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