Act Two Investors LLC Purchases Shares of 79,607 Automatic Data Processing, Inc. $ADP

Key Points

• Act Two Investors LLC acquired 79,607 ADP shares worth approximately $17.8 million, making Automatic Data Processing its 12th-largest holding. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year. The stock recently traded at $269.31, near analysts’ consensus price target of $273.50.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.5% yield. Analysts maintain a consensus “Hold” rating, while one company vice president sold shares under a pre-arranged trading plan.

Act Two Investors LLC purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 79,607 shares of the business services provider's stock, valued at approximately $17,828,000. Automatic Data Processing accounts for about 3.6% of Act Two Investors LLC's holdings, making the stock its 12th largest position.

A number of other hedge funds also recently made changes to their positions in the stock. Danske Bank A S acquired a new position in shares of Automatic Data Processing in the 2nd quarter worth approximately $1,227,000. Diversify Advisory Services LLC acquired a new stake in shares of Automatic Data Processing during the second quarter worth $9,285,000. Gables Capital Management Inc. bought a new position in Automatic Data Processing during the second quarter worth $107,000. Oxbow Advisors LLC bought a new position in Automatic Data Processing during the second quarter worth $1,303,000. Finally, Wealthfront Advisers LLC acquired a new position in Automatic Data Processing in the second quarter valued at $16,685,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Trading Up 1.2%

NASDAQ:ADP opened at $269.31 on Wednesday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock has a market capitalization of $106.99 billion, a price-to-earnings ratio of 24.62 and a beta of 0.81. The firm has a fifty day simple moving average of $246.58 and a two-hundred day simple moving average of $225.48. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.08.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business's revenue was up 6.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio is 62.16%.

Insiders Place Their Bets

In other Automatic Data Processing 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 transaction, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The sale was disclosed in a legal 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. Company insiders own 0.20% of the company's stock.

Analyst Ratings Changes

A number of brokerages have commented on ADP. Argus cut their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. Jefferies Financial Group lowered their price objective on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. BMO Capital Markets boosted their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. Weiss Ratings raised Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Finally, Wells Fargo & Company lifted their target price on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and a consensus price target of $273.50.

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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