Assenagon Asset Management S.A. Trims Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Assenagon Asset Management reduced its ADP position by 26.1% in the second quarter, selling 68,649 shares and retaining 194,631 shares valued at approximately $43.6 million. Institutional investors collectively own 80.03% of ADP.
• Analysts raised several price targets following ADP’s latest results, but the consensus rating remains “Hold” with an average target of $273.50. ADP reported quarterly EPS of $2.64 and revenue of $5.47 billion, both slightly above expectations.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.5% yield. A company vice president separately sold 2,414 shares under a pre-arranged Rule 10b5-1 trading plan.

Assenagon Asset Management S.A. decreased its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 26.1% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 194,631 shares of the business services provider's stock after selling 68,649 shares during the quarter. Assenagon Asset Management S.A.'s holdings in Automatic Data Processing were worth $43,588,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently bought and sold shares of ADP. Brighton Jones LLC lifted its stake in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after acquiring an additional 4,808 shares during the period. Bison Wealth LLC boosted its holdings in Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after purchasing an additional 681 shares during the last quarter. Schnieders Capital Management LLC. boosted its holdings in Automatic Data Processing by 21.8% in the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock valued at $388,000 after purchasing an additional 225 shares during the last quarter. Osterweis Capital Management Inc. acquired a new stake in Automatic Data Processing during the 2nd quarter worth about $108,000. Finally, Diversify Advisory Services LLC grew its position in Automatic Data Processing by 17.5% during the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock worth $1,641,000 after purchasing an additional 815 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. BMO Capital Markets boosted their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Guggenheim lifted their price target on Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. UBS Group upped their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. 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. Finally, Citigroup lifted their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $273.50.

Insider Buying and Selling

In related news, VP David Kwon sold 2,414 shares of the business's stock in a transaction on 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 sale, the vice president owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company's stock.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $271.32 on Friday. The stock has a market capitalization of $107.78 billion, a price-to-earnings ratio of 24.80 and a beta of 0.81. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $310.08. The company has a current ratio of 1.05, a quick ratio of 1.04 and a debt-to-equity ratio of 0.82. The stock has a 50-day moving average of $240.93 and a 200 day moving average of $224.99.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to analyst estimates 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 quarterly revenue was up 6.8% compared to the same quarter last year. During the same period last year, the company earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

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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