55,900 Shares in Automatic Data Processing, Inc. $ADP Purchased by Payden & Rygel

Key Points

• Payden & Rygel acquired 55,900 ADP shares during the third quarter, worth approximately $14.4 million. Institutional investors collectively own 80.03% of the company.
• ADP reported quarterly EPS of $2.82, beating expectations of $2.77, while revenue rose 6.1% year over year to $5.49 billion. The company also raised its fiscal 2027 adjusted EPS growth outlook to 10%–12%.
• Analyst sentiment remains mixed: ADP has a consensus “Hold” rating and an average price target of $283.27, below its reported opening price of $293.84, despite some firms raising targets and maintaining bullish views.

Payden & Rygel acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 55,900 shares of the business services provider's stock, valued at approximately $14,426,000.

A number of other institutional investors also recently modified their holdings of the company. Canopy Partners LLC increased its stake in shares of Automatic Data Processing by 113.9% during the third quarter. Canopy Partners LLC now owns 16,822 shares of the business services provider's stock worth $4,341,000 after purchasing an additional 8,956 shares during the period. Partners Wealth Management LLC boosted its position in shares of Automatic Data Processing by 94.9% during the 3rd quarter. Partners Wealth Management LLC now owns 2,068 shares of the business services provider's stock worth $537,000 after acquiring an additional 1,007 shares in the last quarter. Founders Financial Securities LLC boosted its stake in Automatic Data Processing by 3.0% in the third quarter. Founders Financial Securities LLC now owns 10,721 shares of the business services provider's stock valued at $2,767,000 after buying an additional 310 shares in the last quarter. Sage Rhino Capital LLC bought a new stake in shares of Automatic Data Processing during the third quarter worth $207,000. Finally, Financial Network Wealth Advisors LLC increased its holdings in Automatic Data Processing by 21.3% in the 3rd quarter. Financial Network Wealth Advisors LLC now owns 461 shares of the business services provider's stock worth $119,000 after purchasing an additional 81 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

More Automatic Data Processing News

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Automatic Data Processing Trading Up 2.7%

NASDAQ ADP opened at $293.84 on Friday. The company has a market cap of $116.43 billion, a P/E ratio of 26.05, a P/E/G ratio of 2.58 and a beta of 0.83. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.03 and a quick ratio of 1.05. The company has a 50-day moving average of $277.25 and a 200-day moving average of $240.83. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $309.40.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping analysts' consensus estimates of $2.77 by $0.05. The company had revenue of $5.49 billion for the quarter, compared to analysts' expectations of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The firm's quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.49 earnings per share. As a group, equities analysts predict that Automatic Data Processing, Inc. will post 12.34 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's dividend payout ratio is currently 60.28%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on ADP shares. UBS Group increased their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Morgan Stanley boosted their target price on Automatic Data Processing from $286.00 to $288.00 and gave the stock an "equal weight" rating in a research note on Thursday. BMO Capital Markets raised their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Jefferies Financial Group raised their target price on Automatic Data Processing from $225.00 to $250.00 and gave the stock an "underperform" rating in a research note on Wednesday. Finally, Citigroup lifted their price objective on shares of Automatic Data Processing from $287.00 to $295.00 and gave the stock a "neutral" rating in a report on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $283.27.

Insider Activity at Automatic Data Processing

In other news, VP Joseph Desilva sold 631 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president owned 18,824 shares in the company, valued at $5,324,744.88. This represents a 3.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the transaction, the vice president owned 13,193 shares of the company's stock, valued at $3,694,040. This trade represents a 5.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 31,359 shares of company stock valued at $8,809,422. Insiders own 0.15% of the company's stock.

About Automatic Data Processing

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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