Automatic Data Processing, Inc. $ADP is Vest Financial LLC's 2nd Largest Position

Key Points

• Vest Financial LLC increased its stake in Automatic Data Processing, Inc. by 0.4%, making it the firm’s second largest position at approximately 1.4% of their investment portfolio.
• Insider activity revealed that VP Don Mcguire and CEO Maria Black sold significant shares of ADP stock, reducing their ownership by 43.47% and 23.66%, respectively.
• Automatic Data Processing reported better than expected quarterly earnings, with an EPS of $2.26, beating the consensus estimate, and a revenue increase of 6.3% year-over-year.

Vest Financial LLC grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 0.4% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 316,005 shares of the business services provider's stock after purchasing an additional 1,117 shares during the quarter. Automatic Data Processing makes up approximately 1.4% of Vest Financial LLC's investment portfolio, making the stock its 2nd largest position. Vest Financial LLC owned approximately 0.08% of Automatic Data Processing worth $97,456,000 as of its most recent filing with the Securities and Exchange Commission.

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

Insider Activity

In other news, VP Don Mcguire sold 13,599 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following the transaction, the vice president owned 17,684 shares in the company, valued at $5,244,543.88. This represents a 43.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Maria Black sold 23,605 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the transaction, the chief executive officer owned 76,161 shares in the company, valued at approximately $22,720,349.52. This trade represents a 23.66% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 52,516 shares of company stock valued at $15,632,410. 0.20% of the stock is owned by company insiders.

Automatic Data Processing Stock Performance

ADP stock opened at $285.19 on Monday. The firm has a market cap of $115.53 billion, a price-to-earnings ratio of 28.58, a PEG ratio of 2.61 and a beta of 0.82. The firm has a 50-day simple moving average of $297.26 and a two-hundred day simple moving average of $303.05. Automatic Data Processing, Inc. has a one year low of $272.62 and a one year 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.

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

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were issued a dividend of $1.54 per share. The ex-dividend date was Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.2%. Automatic Data Processing's dividend payout ratio is 61.72%.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on ADP shares. Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday, July 31st. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Weiss Ratings restated a "buy (b)" rating on shares of Automatic Data Processing in a report on Wednesday, October 8th. UBS Group decreased their price objective on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a report on Wednesday, September 17th. Finally, BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a report on Thursday, July 10th. Three analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $316.70.

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.

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