Aberdeen Group plc Sells 602,109 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Aberdeen Group plc has reduced its stake in Automatic Data Processing, Inc. by 64%, owning about $102.44 million worth of shares after selling over 602,000 shares in the first quarter.
• Automatic Data Processing reported a quarterly EPS of $2.26, exceeding estimates, and its revenue was $5.13 billion with a year-over-year increase of 6.3%.
• The company has announced a quarterly dividend of $1.54 per share, representing an annualized dividend yield of 2.0% and a payout ratio of 61.72%.

Aberdeen Group plc lowered its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 64.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 338,944 shares of the business services provider's stock after selling 602,109 shares during the quarter. Aberdeen Group plc owned about 0.08% of Automatic Data Processing worth $102,442,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Sentinus LLC lifted its position in Automatic Data Processing by 2.3% in the 4th quarter. Sentinus LLC now owns 1,548 shares of the business services provider's stock valued at $453,000 after purchasing an additional 35 shares during the last quarter. Syntegra Private Wealth Group LLC grew its stake in shares of Automatic Data Processing by 4.7% in the 1st quarter. Syntegra Private Wealth Group LLC now owns 779 shares of the business services provider's stock worth $238,000 after purchasing an additional 35 shares during the last quarter. Rehmann Capital Advisory Group grew its stake in shares of Automatic Data Processing by 1.0% in the 4th quarter. Rehmann Capital Advisory Group now owns 3,686 shares of the business services provider's stock worth $1,079,000 after purchasing an additional 36 shares during the last quarter. Detalus Advisors LLC increased its position in shares of Automatic Data Processing by 2.4% in the first quarter. Detalus Advisors LLC now owns 1,566 shares of the business services provider's stock worth $478,000 after acquiring an additional 37 shares in the last quarter. Finally, Main Street Group LTD increased its position in shares of Automatic Data Processing by 50.7% in the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after acquiring an additional 38 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Up 0.6%

NASDAQ ADP traded up $1.9350 during trading hours on Wednesday, reaching $307.6550. 307,734 shares of the company's stock were exchanged, compared to its average volume of 1,728,188. The company's 50-day moving average is $305.24 and its two-hundred day moving average is $305.62. Automatic Data Processing, Inc. has a one year low of $264.73 and a one year high of $329.93. 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 company has a market capitalization of $124.61 billion, a price-to-earnings ratio of 30.79, a price-to-earnings-growth ratio of 2.78 and a beta of 0.81.

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

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be issued a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a yield of 2.0%. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on ADP shares. Stifel Nicolaus raised their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, June 5th. UBS Group cut their target price on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research note on Friday, June 13th. TD Securities upped their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. Finally, Mizuho boosted their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. Two investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and a consensus price target of $317.00.

About Automatic Data Processing

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.