Argent Capital Management LLC Purchases 2,587 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Argent Capital Management LLC increased its stake in Automatic Data Processing, Inc. by 2.7%, purchasing an additional 2,587 shares, bringing their total holdings to 97,762 shares valued at approximately $30.15 million.
• Analysts have set a consensus rating of "Hold" for ADP stock, with target prices ranging from $310 to $340, reflecting confidence in its growth potential.
• Automatic Data Processing announced a quarterly dividend of $1.54 per share, which will be paid on October 1st, yielding an annualized dividend of 2.1%.

Argent Capital Management LLC lifted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.7% during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 97,762 shares of the business services provider's stock after buying an additional 2,587 shares during the period. Argent Capital Management LLC's holdings in Automatic Data Processing were worth $30,150,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of ADP. Activest Wealth Management raised its stake in shares of Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after purchasing an additional 78 shares during the period. Clarity Asset Management Inc. purchased a new stake in Automatic Data Processing during the first quarter worth about $29,000. von Borstel & Associates Inc. bought a new stake in Automatic Data Processing in the first quarter worth about $30,000. Y.D. More Investments Ltd purchased a new position in Automatic Data Processing in the first quarter valued at about $35,000. Finally, Abound Wealth Management grew its position in shares of Automatic Data Processing by 58.1% during the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after acquiring an additional 43 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ADP. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a report on Thursday, July 10th. Mizuho raised their target price on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Stifel Nicolaus boosted their target price on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday, July 31st. Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, June 5th. Finally, Morgan Stanley lifted their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $314.73.

Automatic Data Processing Stock Up 0.6%

ADP stock opened at $293.66 on Tuesday. The company's 50 day moving average is $301.19 and its 200 day moving average is $303.73. The stock has a market cap of $118.94 billion, a price-to-earnings ratio of 29.42, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a 1-year low of $272.18 and a 1-year high of $329.93.

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, beating the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The business had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.05 billion. During the same period in the previous year, the business posted $2.09 earnings per share. Automatic Data Processing's revenue for the quarter was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a $1.54 dividend. The ex-dividend date is Friday, September 12th. This represents a $6.16 annualized dividend and a yield of 2.1%. Automatic Data Processing's payout ratio is 61.72%.

Insider Buying and Selling

In other news, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $1,368,373.98. Following the completion of the transaction, the vice president directly owned 17,536 shares in the company, valued at approximately $5,200,651.52. This represents a 20.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP David Foskett sold 1,373 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the transaction, the vice president owned 11,781 shares in the company, valued at $3,493,891.17. This trade represents a 10.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,516 shares of company stock valued at $15,632,410 in the last three months. 0.21% of the stock is owned by corporate insiders.

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.

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