Automatic Data Processing, Inc. $ADP Position Raised by Vanguard Personalized Indexing Management LLC

Key Points

• Vanguard Personalized Indexing Management LLC increased its stake in Automatic Data Processing, Inc. by 20.4%, owning 64,316 shares worth approximately $19.8 million.
• Insider activity included VP Michael A. Bonarti selling 8,728 shares for around $2.6 million, reducing his ownership by 9.78%.
• The company declared a quarterly dividend of $1.54, representing a 2.2% yield based on an annualized payout of $6.16.

Vanguard Personalized Indexing Management LLC raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 20.4% during the second quarter, according to its most recent disclosure with the SEC. The fund owned 64,316 shares of the business services provider's stock after buying an additional 10,882 shares during the quarter. Vanguard Personalized Indexing Management LLC's holdings in Automatic Data Processing were worth $19,835,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Concurrent Investment Advisors LLC lifted its stake in Automatic Data Processing by 3.4% in the second quarter. Concurrent Investment Advisors LLC now owns 37,913 shares of the business services provider's stock valued at $11,692,000 after buying an additional 1,238 shares during the last quarter. Apollon Wealth Management LLC lifted its stake in Automatic Data Processing by 3.7% in the second quarter. Apollon Wealth Management LLC now owns 15,009 shares of the business services provider's stock valued at $4,629,000 after buying an additional 532 shares during the last quarter. Hemington Wealth Management lifted its stake in Automatic Data Processing by 5.6% in the second quarter. Hemington Wealth Management now owns 1,857 shares of the business services provider's stock valued at $572,000 after buying an additional 99 shares during the last quarter. Fifth Third Wealth Advisors LLC lifted its stake in Automatic Data Processing by 9.7% in the second quarter. Fifth Third Wealth Advisors LLC now owns 6,712 shares of the business services provider's stock valued at $2,070,000 after buying an additional 594 shares during the last quarter. Finally, Bey Douglas LLC lifted its stake in Automatic Data Processing by 36.8% in the second quarter. Bey Douglas LLC now owns 14,917 shares of the business services provider's stock valued at $4,600,000 after buying an additional 4,012 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research note on Thursday, July 10th. UBS Group cut their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 17th. Weiss Ratings restated a "buy (b)" rating on shares of Automatic Data Processing in a research note on Wednesday. Stifel Nicolaus lifted their price objective 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. Finally, Morgan Stanley lifted their price objective on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Three analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $316.70.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of the business's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the sale, the vice president directly owned 80,531 shares in the company, valued at approximately $24,032,866.33. The trade was a 9.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP David Foskett sold 1,373 shares of the business's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $407,190.61. Following the completion of the sale, the vice president owned 11,781 shares in the company, valued at approximately $3,493,891.17. This trade represents a 10.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,516 shares of company stock valued at $15,632,410 in the last quarter. 0.20% of the stock is owned by company insiders.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $285.19 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. The company's 50-day moving average price is $297.26 and its two-hundred day moving average price is $303.07. Automatic Data Processing, Inc. has a 52 week low of $272.62 and a 52 week high of $329.93. The stock has a market cap of $115.53 billion, a PE ratio of 28.58, a price-to-earnings-growth ratio of 2.61 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. During the same period in the previous year, the business earned $2.09 earnings per share. Automatic Data Processing's revenue for the quarter was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Automatic Data Processing Profile

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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