AMG National Trust Bank Purchases Shares of 11,625 Automatic Data Processing, Inc. $ADP

Key Points

• AMG National Trust Bank acquired 11,625 shares of ADP in the second quarter, worth approximately $2.6 million. Several other institutional investors also initiated positions, with institutions and hedge funds owning 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS on $5.47 billion in revenue, with revenue rising 6.8% year over year. The company provided fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70, equivalent to $6.80 annually and a 2.5% yield. Analysts remain broadly neutral, with a consensus “Hold” rating and an average price target of $273.50.

AMG National Trust Bank acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 11,625 shares of the business services provider's stock, valued at approximately $2,603,000.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Compass Capital Management Inc. acquired a new stake in Automatic Data Processing during the 2nd quarter worth approximately $48,783,000. Roman Butler Fullerton & Co. purchased a new stake in Automatic Data Processing during the second quarter worth approximately $925,000. Simplicity Wealth LLC purchased a new stake in Automatic Data Processing during the second quarter worth approximately $1,838,000. Baxter Bros Inc. acquired a new stake in shares of Automatic Data Processing in the second quarter worth $16,446,000. Finally, Longfellow Investment Management Co. LLC acquired a new stake in shares of Automatic Data Processing in the second quarter worth $1,313,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Performance

ADP opened at $272.96 on Monday. The firm has a market capitalization of $108.44 billion, a P/E ratio of 24.95 and a beta of 0.81. The firm's 50 day moving average is $245.08 and its 200-day moving average is $225.27. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $310.08. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its 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 business 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 quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $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 Announces Dividend

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

Insiders Place Their Bets

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

Analysts Set New Price Targets

Several research firms recently weighed in on ADP. Cantor Fitzgerald lifted their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. TD Cowen increased their price target on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a report on Monday, July 6th. Wells Fargo & Company raised their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Finally, Morgan Stanley boosted their price objective on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $273.50.

Automatic Data Processing Company Profile

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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