Automatic Data Processing, Inc. $ADP Shares Bought by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management S.A. significantly increased its stake in Automatic Data Processing, Inc. by 1,362.1% in the second quarter, holding 211,646 shares valued at approximately $65.27 million.
• Several hedge funds made substantial changes to their positions in Automatic Data Processing, with GAMMA Investing LLC raising its investment by 34,655.1% to own nearly 2.9 million shares worth $886.34 million.
• Automatic Data Processing declared a quarterly dividend of $1.54 per share, which will be paid on October 1st, reflecting an annualized yield of 2.1%.

Assenagon Asset Management S.A. increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1,362.1% in the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 211,646 shares of the business services provider's stock after acquiring an additional 197,171 shares during the period. Assenagon Asset Management S.A. owned approximately 0.05% of Automatic Data Processing worth $65,272,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Activest Wealth Management grew its position in Automatic Data Processing by 2,600.0% in the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after acquiring an additional 78 shares during the period. Clarity Asset Management Inc. acquired a new stake in shares of Automatic Data Processing in the first quarter valued at $29,000. von Borstel & Associates Inc. acquired a new stake in shares of Automatic Data Processing in the first quarter valued at $30,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing in the first quarter valued at $35,000. Finally, Abound Wealth Management raised its stake in shares of Automatic Data Processing by 58.1% in the first 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 in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

NASDAQ:ADP traded up $1.66 during mid-day trading on Monday, reaching $293.66. The stock had a trading volume of 2,134,587 shares, compared to its average volume of 1,738,775. The business has a 50 day simple moving average of $301.38 and a 200 day simple moving average of $303.82. Automatic Data Processing, Inc. has a twelve month low of $272.18 and a twelve month high of $329.93. 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 has a market capitalization of $118.94 billion, a price-to-earnings ratio of 29.42, a PEG ratio of 2.67 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The firm had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. During the same period in the previous year, the firm posted $2.09 EPS. The company's quarterly revenue was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Insider Transactions at Automatic Data Processing

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

Analyst Upgrades and Downgrades

ADP has been the topic of a number of analyst reports. Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, June 5th. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research note on Thursday, July 10th. Morgan Stanley raised their price target on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Mizuho raised their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. Finally, Stifel Nicolaus raised their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Two investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $314.73.

About Automatic Data Processing

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.