Automatic Data Processing, Inc. $ADP Holdings Trimmed by Andra AP fonden

Key Points

• Andra AP fonden cut its ADP stake by 47.2% in the second quarter, selling 32,920 shares and retaining 36,769 shares worth approximately $8.2 million. Institutional investors collectively own 80.03% of ADP.
• ADP reported quarterly adjusted earnings of $2.64 per share, surpassing estimates of $2.59, while revenue rose 6.8% year over year to $5.47 billion. The company issued fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.5% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Andra AP fonden lowered its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 47.2% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 36,769 shares of the business services provider's stock after selling 32,920 shares during the period. Andra AP fonden's holdings in Automatic Data Processing were worth $8,234,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of the business. BlackRock Inc. acquired a new position in Automatic Data Processing in the 2nd quarter worth about $8,097,229,000. Bank of America Corp DE bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth $1,231,175,000. Deutsche Bank AG bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth $994,937,000. Bank of New York Mellon Corp acquired a new position in Automatic Data Processing in the 2nd quarter valued at $725,513,000. Finally, Cardano Risk Management B.V. grew its stake in Automatic Data Processing by 950.1% in the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after buying an additional 3,223,855 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Transactions at Automatic Data Processing

In other news, VP David Kwon sold 798 shares of the business's stock in a transaction on Thursday, August 20th. The stock was 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 owned 13,193 shares in the company, valued at $3,694,040. The trade was a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian Michaud sold 120 shares of Automatic Data Processing stock in a transaction dated Friday, August 21st. The stock was 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 owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,773 shares of company stock valued at $9,450,629 over the last quarter. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing Stock Down 0.1%

Shares of ADP opened at $269.64 on Wednesday. The company has a market capitalization of $107.12 billion, a P/E ratio of 24.65, a PEG ratio of 2.45 and a beta of 0.82. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $294.35. The business's 50 day simple moving average is $269.96 and its 200-day simple moving average is $235.18.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the firm earned $2.26 earnings per share. The business's revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, sell-side analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be issued a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.5%. Automatic Data Processing's dividend payout ratio is currently 62.16%.

Analyst Ratings Changes

A number of brokerages have recently commented on ADP. Morgan Stanley upped their price target 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. UBS Group increased their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Citigroup raised their price target on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research report on Thursday, July 30th. Wells Fargo & Company upped their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Finally, Cantor Fitzgerald boosted their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $273.50.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services.

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