Automatic Data Processing, Inc. $ADP Position Increased by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management increased its ADP stake by 148.6% in the third quarter, acquiring 289,268 additional shares and bringing its holdings to 483,899 shares worth approximately $124.9 million. Institutional investors collectively own 80.03% of ADP.
• Analysts maintain a largely neutral view, with ADP receiving an average rating of “Hold” and an average price target of $273.50, despite several firms raising their targets.
• ADP reported quarterly EPS of $2.64, exceeding estimates, while revenue rose 6.8% year over year to $5.47 billion. The company also paid a quarterly dividend of $1.70 per share, equivalent to a 2.4% annualized yield.

Assenagon Asset Management S.A. raised its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 148.6% during the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 483,899 shares of the business services provider's stock after acquiring an additional 289,268 shares during the quarter. Assenagon Asset Management S.A. owned approximately 0.12% of Automatic Data Processing worth $124,875,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in ADP. Thrive Wealth Management LLC boosted its stake in shares of Automatic Data Processing by 3.5% during the 2nd quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider's stock worth $243,000 after acquiring an additional 37 shares during the last quarter. Guardian Partners Inc. grew its position in shares of Automatic Data Processing by 0.9% during the 1st quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider's stock valued at $1,044,000 after acquiring an additional 47 shares during the period. Bank & Trust Co increased its stake in shares of Automatic Data Processing by 1.3% in the 2nd quarter. Bank & Trust Co now owns 3,908 shares of the business services provider's stock worth $875,000 after purchasing an additional 50 shares in the last quarter. Rehmann Capital Advisory Group increased its stake in shares of Automatic Data Processing by 1.2% in the 2nd quarter. Rehmann Capital Advisory Group now owns 4,122 shares of the business services provider's stock worth $923,000 after purchasing an additional 50 shares in the last quarter. Finally, Essex Financial Services Inc. raised its holdings in Automatic Data Processing by 0.8% in the 1st quarter. Essex Financial Services Inc. now owns 6,444 shares of the business services provider's stock worth $1,309,000 after purchasing an additional 52 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

ADP has been the subject of several recent analyst reports. Wells Fargo & Company upped their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. UBS Group boosted their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. 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 research note on Thursday, July 30th. TD Cowen increased their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a report on Monday, July 6th. Finally, Weiss Ratings raised shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. 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 company. According to MarketBeat.com, Automatic Data Processing currently has an average rating of "Hold" and an average price target of $273.50.

Insiders Place Their Bets

In other news, VP Brian Michaud sold 120 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the sale, the vice president owned 18,442 shares in the company, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the firm's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president directly owned 18,824 shares of the company's stock, valued at $5,324,744.88. The trade was a 3.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 33,773 shares of company stock valued at $9,450,629. Company insiders own 0.15% of the company's stock.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $288.90 on Friday. The company has a market cap of $114.48 billion, a P/E ratio of 25.69, a P/E/G ratio of 2.59 and a beta of 0.83. The business's 50 day moving average price is $272.99 and its 200-day moving average price is $242.21. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $290.12. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to analysts' expectations of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company's revenue was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Sell-side analysts predict that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Friday, September 11th were issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing's payout ratio is currently 62.16%.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management and business outsourcing solutions. The company helps organizations manage payroll, tax withholding and compliance, employee benefits, time and attendance, workforce management, talent acquisition, and human resources administration.

ADP offers cloud-based platforms and related services designed for businesses of different sizes, from small companies to large multinational employers. Its offerings include payroll and HR software, workforce analytics, talent management tools, retirement and insurance-related administration, and professional employer organization services through ADP TotalSource.

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