Automatic Data Processing, Inc. $ADP Holdings Cut by Wellington Management Group LLP

Key Points

• Wellington Management reduced its ADP stake by 0.7%, selling 75,157 shares and retaining 10.03 million shares worth approximately $2.25 billion. Institutional investors collectively own about 80.03% of the company.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $273.50, despite several firms raising their targets.
• ADP exceeded quarterly earnings and revenue estimates, reporting $2.64 EPS and $5.47 billion in revenue. The company also declared a $1.70 quarterly dividend, representing a 2.4% annualized yield.

Wellington Management Group LLP lowered its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 0.7% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 10,029,229 shares of the business services provider's stock after selling 75,157 shares during the period. Wellington Management Group LLP owned about 2.52% of Automatic Data Processing worth $2,246,046,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently bought and sold shares of ADP. Archer Investment Corp bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at approximately $144,000. Kingsview Wealth Management LLC acquired a new position in Automatic Data Processing during the second quarter worth $6,576,000. Beacon Pointe Advisors LLC acquired a new position in Automatic Data Processing during the second quarter worth $16,703,000. Tilia Fiduciary Partners Inc. bought a new position in Automatic Data Processing during the second quarter valued at about $200,000. Finally, Livforsakringsbolaget Skandia Omsesidigt bought a new position in Automatic Data Processing during the second quarter valued at about $4,737,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ADP shares. Guggenheim upped their price target on Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. UBS Group raised their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Morgan Stanley boosted their target price on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Argus decreased their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Finally, Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $287.48 on Friday. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $305.31. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $114.20 billion, a PE ratio of 26.28 and a beta of 0.81. The stock has a 50-day simple moving average of $256.03 and a 200 day simple moving average of $227.97.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. The firm 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%.The company's revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the firm posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be paid a $1.70 dividend. The ex-dividend date is Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. Automatic Data Processing's dividend payout ratio (DPR) is presently 62.16%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 120 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares of the company's stock, valued at $5,158,227.40. This represents a 0.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total transaction of $223,440.00. Following the completion of the sale, the vice president directly owned 13,193 shares of the company's stock, valued at approximately $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 3,332 shares of company stock worth $898,211. 0.20% of the stock is currently owned by corporate insiders.

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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