Allworth Financial LP Acquires New Position in Automatic Data Processing, Inc. $ADP

Key Points

• Allworth Financial initiated a sizable ADP position, purchasing 141,637 shares worth approximately $31.7 million in the second quarter. Institutional investors and hedge funds collectively own 80.03% of the company.
• Analysts remain cautious, with ADP carrying a consensus “Hold” rating and an average price target of $273.50, despite several firms recently raising their targets.
• ADP reported quarterly EPS of $2.64 and revenue of $5.47 billion, beating estimates, while revenue increased 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, representing a 2.4% yield.

Allworth Financial LP acquired a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 141,637 shares of the business services provider's stock, valued at approximately $31,720,000.

Several other institutional investors and hedge funds also recently bought and sold shares of ADP. Imprint Wealth LLC purchased a new stake in Automatic Data Processing in the third quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth about $26,000. Bard Associates Inc. purchased a new stake in Automatic Data Processing in the 4th quarter valued at about $28,000. Whipplewood Advisors LLC lifted its position in Automatic Data Processing by 2,740.0% in the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after buying an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in Automatic Data Processing in the fourth quarter valued at about $33,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. Cantor Fitzgerald lifted their price target on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Stifel Nicolaus lifted their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a report on Thursday, July 30th. TD Cowen upped their price target on Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research note on Monday, July 6th. Morgan Stanley lifted their price objective on Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Finally, Jefferies Financial Group cut their price objective on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Stock Up 0.7%

Shares of NASDAQ ADP opened at $279.21 on Friday. The stock has a market cap of $110.92 billion, a P/E ratio of 25.52 and a beta of 0.81. The business's fifty day simple moving average is $248.57 and its 200-day simple moving average is $225.93. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $308.99. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82.

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

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.4%. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares in the company, valued at $2,565,889.20. The trade was a 19.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by corporate insiders.

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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