Aberdeen Group plc Raises Position in Automatic Data Processing, Inc. $ADP

Key Points

• Aberdeen Group plc has increased its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 14.5%, owning approximately 0.10% of the company with a total value of around $118 million.
• Automatic Data Processing recently reported earnings of $2.26 per share, slightly exceeding analyst expectations, and achieved a revenue of $5.13 billion for the quarter, marking a 6.3% increase from the previous year.
• The company has announced a quarterly dividend of $1.54 per share, with a payout ratio of 61.72%, reflecting its commitment to returning value to shareholders.

Aberdeen Group plc lifted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 14.5% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 388,066 shares of the business services provider's stock after buying an additional 49,122 shares during the period. Aberdeen Group plc owned approximately 0.10% of Automatic Data Processing worth $118,114,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. AlphaCore Capital LLC purchased a new stake in shares of Automatic Data Processing in the first quarter worth about $688,000. Golden State Wealth Management LLC boosted its position in shares of Automatic Data Processing by 29.6% in the first quarter. Golden State Wealth Management LLC now owns 565 shares of the business services provider's stock worth $173,000 after buying an additional 129 shares during the period. Advisory Alpha LLC boosted its position in shares of Automatic Data Processing by 130.2% in the first quarter. Advisory Alpha LLC now owns 4,416 shares of the business services provider's stock worth $1,349,000 after buying an additional 2,498 shares during the period. Meiji Yasuda Life Insurance Co boosted its position in shares of Automatic Data Processing by 4.4% in the first quarter. Meiji Yasuda Life Insurance Co now owns 32,478 shares of the business services provider's stock worth $9,923,000 after buying an additional 1,375 shares during the period. Finally, Zurich Insurance Group Ltd FI purchased a new stake in shares of Automatic Data Processing in the first quarter worth about $39,906,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Trading Down 0.2%

Shares of NASDAQ ADP opened at $285.19 on Friday. The stock's 50 day moving average price is $297.26 and its two-hundred day moving average price is $303.06. Automatic Data Processing, Inc. has a 52-week low of $272.62 and a 52-week high of $329.93. The stock has a market capitalization of $115.53 billion, a P/E ratio of 28.58, a PEG ratio of 2.62 and a beta of 0.82. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

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 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The firm had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the prior year, the firm posted $2.09 earnings per share. Automatic Data Processing's revenue for the quarter was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th were paid a dividend of $1.54 per share. The ex-dividend date was Friday, September 12th. This represents a $6.16 annualized dividend and a yield of 2.2%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on ADP shares. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research note on Thursday, July 10th. Mizuho boosted their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. UBS Group cut their price target on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 17th. Finally, Morgan Stanley boosted their price target on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $316.70.

Insider Activity

In other news, VP Christopher D'ambrosio sold 597 shares of the stock in a transaction that occurred on Wednesday, September 10th. The stock was sold at an average price of $296.90, for a total transaction of $177,249.30. Following the sale, the vice president directly owned 10,541 shares in the company, valued at approximately $3,129,622.90. This represents a 5.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Don Mcguire sold 13,599 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $4,033,055.43. Following the sale, the vice president owned 17,684 shares in the company, valued at $5,244,543.88. The trade was a 43.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 52,516 shares of company stock valued at $15,632,410 over the last three months. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Company 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.

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