Abacus FCF Advisors LLC Raises Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Abacus FCF Advisors LLC increased its stake in Automatic Data Processing, Inc. by 17.5% during the second quarter, owning 38,079 shares valued at approximately $11.74 million.
• Automatic Data Processing recently reported $2.26 EPS, beating expectations, with revenues of $5.13 billion for the quarter, reflecting a 6.3% year-over-year growth.
• The firm declared a quarterly dividend of $1.54, set to be paid on October 1st, with a dividend yield of 2.1% and a payout ratio of 61.72%.

Abacus FCF Advisors LLC lifted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 17.5% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 38,079 shares of the business services provider's stock after buying an additional 5,663 shares during the period. Abacus FCF Advisors LLC's holdings in Automatic Data Processing were worth $11,744,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Brighton Jones LLC increased its position in shares of Automatic Data Processing by 92.1% during the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock worth $2,935,000 after acquiring an additional 4,808 shares during the period. Bank Pictet & Cie Europe AG purchased a new stake in Automatic Data Processing during the fourth quarter worth approximately $957,000. Bison Wealth LLC increased its stake in Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after purchasing an additional 681 shares during the last quarter. State of Wyoming lifted its holdings in Automatic Data Processing by 26.1% in the 4th quarter. State of Wyoming now owns 449 shares of the business services provider's stock valued at $131,000 after acquiring an additional 93 shares during the last quarter. Finally, Vise Technologies Inc. increased its holdings in Automatic Data Processing by 71.9% in the fourth quarter. Vise Technologies Inc. now owns 6,401 shares of the business services provider's stock worth $1,874,000 after buying an additional 2,677 shares during the last quarter. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP traded up $1.05 during midday trading on Friday, hitting $292.00. The company's stock had a trading volume of 4,039,574 shares, compared to its average volume of 1,719,206. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The firm's fifty day moving average price is $301.38 and its 200-day moving average price is $303.82. Automatic Data Processing, Inc. has a 1-year low of $272.18 and a 1-year high of $329.93. The firm has a market cap of $118.27 billion, a P/E ratio of 29.26, a P/E/G ratio of 2.67 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The firm had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm's revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the firm posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be issued a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is presently 61.72%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the transaction, the vice president owned 80,531 shares of the company's stock, valued at $24,032,866.33. This trade represents a 9.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Maria Black sold 23,605 shares of the business's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $298.32, for a total value of $7,041,843.60. Following the sale, the chief executive officer owned 76,161 shares in the company, valued at approximately $22,720,349.52. The trade was a 23.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 52,516 shares of company stock valued at $15,632,410. Corporate insiders own 0.21% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Stifel Nicolaus boosted their target price on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, June 5th. UBS Group decreased their target price on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday. Morgan Stanley lifted their target price on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Finally, BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research report on Thursday, July 10th. Two equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $314.73.

Automatic Data Processing Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.