9,449 Automatic Data Processing, Inc. $ADP Shares Purchased by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates increased its ADP stake by 32.9% in the third quarter, purchasing 9,449 shares and bringing its holdings to 38,149 shares valued at approximately $9.85 million. Institutional investors collectively own about 80% of the company.
• Analysts maintain a generally neutral outlook, with three Buy, eight Hold, and one Sell rating; the consensus price target is $273.50. ADP recently traded near $294.50, close to its 52-week high.
• ADP exceeded quarterly earnings and revenue estimates, reporting $2.64 in EPS and $5.47 billion in revenue, while revenue grew 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, equivalent to a 2.3% yield.

Pinnacle Associates Ltd. lifted its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 32.9% in the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 38,149 shares of the business services provider's stock after purchasing an additional 9,449 shares during the period. Pinnacle Associates Ltd.'s holdings in Automatic Data Processing were worth $9,845,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of ADP. BlackRock Inc. purchased a new position in Automatic Data Processing during the 2nd quarter worth $8,097,229,000. Bank of America Corp DE purchased a new stake in shares of Automatic Data Processing in the 2nd quarter worth $1,231,175,000. Deutsche Bank AG purchased a new stake in shares of Automatic Data Processing in the 2nd quarter worth $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Automatic Data Processing by 3.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider's stock worth $952,112,000 after buying an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Automatic Data Processing during the 2nd quarter worth $725,513,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Stifel Nicolaus raised their price target on Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. UBS Group lifted their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Citigroup upped their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. BMO Capital Markets increased their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Finally, Morgan Stanley increased their target price 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. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $273.50.

Insider Activity

In other news, VP Joseph Desilva sold 631 shares of the firm's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the sale, the vice president directly owned 18,824 shares in the company, valued at approximately $5,324,744.88. This trade represents a 3.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total transaction of $223,440.00. Following the completion of the transaction, the vice president directly owned 13,193 shares in the company, valued at approximately $3,694,040. The trade was a 5.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,773 shares of company stock valued at $9,450,629 over the last 90 days. 0.15% of the stock is currently owned by corporate insiders.

Automatic Data Processing Trading Up 0.6%

Shares of NASDAQ ADP opened at $294.50 on Thursday. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $296.14. The business has a fifty day moving average price of $274.19 and a 200 day moving average price of $244.34. The stock has a market capitalization of $116.70 billion, a P/E ratio of 26.92, a price-to-earnings-growth ratio of 2.65 and a beta of 0.83. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the firm earned $2.26 earnings per share. The firm's quarterly 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. Equities research analysts expect that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Friday, September 11th were given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing's dividend payout ratio is presently 62.16%.

Automatic Data Processing Profile

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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