Arcadia Wealth Management Inc. Purchases New Stake in Automatic Data Processing, Inc. (NASDAQ:ADP)

Key Points

• Arcadia Wealth Management Inc. acquired 2,034 shares of Automatic Data Processing, Inc. (NASDAQ:ADP), valued at approximately $621,000, making it the firm's 28th largest position.
• Automatic Data Processing recently reported $2.26 earnings per share, exceeding analysts' expectations, and had a net margin of 19.84% with quarterly revenue growth of 6.3%.
• The company announced a quarterly dividend of $1.54 per share, with an annualized yield of 2.0%, to be paid to investors on October 1st.

Arcadia Wealth Management Inc. acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 2,034 shares of the business services provider's stock, valued at approximately $621,000. Automatic Data Processing accounts for 0.5% of Arcadia Wealth Management Inc.'s holdings, making the stock its 28th biggest holding.

Other large investors have also recently added to or reduced their stakes in the company. AlphaCore Capital LLC bought a new stake in Automatic Data Processing in the first quarter worth approximately $688,000. Golden State Wealth Management LLC grew its position in 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 acquiring an additional 129 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of Automatic Data Processing by 13.8% during the 1st quarter. GAMMA Investing LLC now owns 9,495 shares of the business services provider's stock worth $2,901,000 after buying an additional 1,148 shares during the period. Toronto Dominion Bank boosted its holdings in shares of Automatic Data Processing by 10.2% during the 4th quarter. Toronto Dominion Bank now owns 236,707 shares of the business services provider's stock worth $69,290,000 after buying an additional 21,910 shares during the period. Finally, Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Automatic Data Processing by 8.9% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 250,836 shares of the business services provider's stock worth $76,638,000 after buying an additional 20,467 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Shares of ADP stock traded up $2.58 during mid-day trading on Wednesday, reaching $302.21. The company's stock had a trading volume of 496,067 shares, compared to its average volume of 1,739,102. Automatic Data Processing, Inc. has a 1-year low of $260.36 and a 1-year high of $329.93. The company has a market cap of $122.41 billion, a P/E ratio of 30.25, a PEG ratio of 2.79 and a beta of 0.81. 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 firm's 50-day moving average is $307.15 and its two-hundred day moving average is $305.54.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. The business 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 firm's revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter last year, the company posted $2.09 EPS. On average, research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

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

Analyst Ratings Changes

Several research firms recently issued reports on ADP. Morgan Stanley upped their price objective on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. TD Securities upped their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a report on Thursday, June 5th. UBS Group decreased their price objective on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a report on Friday, June 13th. Finally, Stifel Nicolaus upped their price objective 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. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating and two have issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $314.33.

Automatic Data Processing 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.