6,857 Shares in Automatic Data Processing, Inc. $ADP Purchased by HBK Sorce Advisory LLC

Key Points

• HBK Sorce Advisory LLC purchased 6,857 shares of Automatic Data Processing valued at approximately $1.85 million, while institutional investors overall own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. Analysts maintain a consensus “Hold” rating and an average price target of $273.50.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.5% yield; an insider separately sold 2,414 shares under a pre-arranged trading plan.

HBK Sorce Advisory LLC purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor purchased 6,857 shares of the business services provider's stock, valued at approximately $1,852,000.

A number of other hedge funds and other institutional investors 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 valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth approximately $26,000. Bard Associates Inc. purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth approximately $28,000. Prosperity Bancshares Inc purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth approximately $33,000. Finally, High Point Wealth Management LLC bought a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $34,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $272.96 on Monday. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $310.08. The stock's fifty day simple moving average is $245.08 and its two-hundred day simple moving average is $225.27. The stock has a market capitalization of $108.44 billion, a PE ratio of 24.95 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 (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping analysts' consensus estimates 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 net margin of 20.11% and a return on equity of 71.34%. The firm's revenue was up 6.8% on a year-over-year basis. During the same period in the previous year, the company posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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 issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio is currently 62.16%.

Wall Street Analysts Forecast Growth

ADP has been the topic of several research analyst reports. TD Cowen upped their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 21st. Mizuho lowered their target price on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Morgan Stanley upped their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Finally, UBS Group raised their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Three 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 has an average rating of "Hold" and an average price target of $273.50.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of the business's 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 transaction, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. The trade was a 19.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by insiders.

About Automatic Data Processing

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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