8,562 Shares in Automatic Data Processing, Inc. $ADP Bought by Mystic Asset Management Inc.

Key Points

• Mystic Asset Management initiated a position in Automatic Data Processing by purchasing 8,562 shares worth approximately $1.92 million. Institutional investors now own 80.03% of ADP’s outstanding stock.
• Analysts remain broadly cautious, with three Buy ratings, eight Holds and one Sell; the consensus rating is Hold with a $273.50 price target.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, while revenue increased 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, equivalent to a 2.4% yield.

Mystic Asset Management Inc. bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 8,562 shares of the business services provider's stock, valued at approximately $1,917,000.

Other hedge funds also recently added to or reduced their stakes in the company. Horizon Investments LLC raised its stake in shares of Automatic Data Processing by 34.1% during the fourth quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider's stock valued at $6,725,000 after purchasing an additional 6,655 shares in the last quarter. Compass Capital Management Inc. grew its position in Automatic Data Processing by 3.0% in the 4th quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock valued at $52,400,000 after buying an additional 5,899 shares in the last quarter. DNB Asset Management AS increased its stake in Automatic Data Processing by 11.1% during the 4th quarter. DNB Asset Management AS now owns 152,697 shares of the business services provider's stock valued at $39,278,000 after buying an additional 15,287 shares during the period. Fulton Bank N.A. raised its position in shares of Automatic Data Processing by 192.0% during the 2nd quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock worth $1,605,000 after buying an additional 4,711 shares in the last quarter. Finally, Leonteq Securities AG acquired a new position in shares of Automatic Data Processing during the fourth quarter valued at approximately $3,054,000. 80.03% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Stifel Nicolaus lifted their target price on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Cantor Fitzgerald upped their price target on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. UBS Group raised their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. BMO Capital Markets lifted their price objective 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. Finally, Robert W. Baird dropped their target price on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $273.50.

Insider Transactions at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the 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 approximately $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by company insiders.

Automatic Data Processing Stock Up 0.7%

ADP stock opened at $279.21 on Friday. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $308.99. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The company has a market cap of $110.92 billion, a price-to-earnings ratio of 25.52 and a beta of 0.81. The company has a 50 day moving average of $248.57 and a two-hundred day moving average of $225.93.

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 earnings per share (EPS) for the quarter, topping the consensus estimate 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 quarterly revenue was up 6.8% compared to the same quarter last year. During the same period last year, the company earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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 given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

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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