Automatic Data Processing, Inc. $ADP Shares Acquired by Ascent Group LLC

Key Points

• Ascent Group LLC has increased its stake in Automatic Data Processing, Inc. by 84.5%, now holding 17,616 shares valued at approximately $5.38 million.
• Automatic Data Processing's stock has recently declined by 1.7%, trading at about $295.97, with a market cap of $119.88 billion.
• The company reported earnings of $2.26 per share for the last quarter, exceeding estimates and reflecting a 6.3% year-over-year revenue growth.

Ascent Group LLC raised its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 84.5% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 17,616 shares of the business services provider's stock after acquiring an additional 8,066 shares during the period. Ascent Group LLC's holdings in Automatic Data Processing were worth $5,382,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of Automatic Data Processing by 0.5% in the first quarter. Vanguard Group Inc. now owns 40,949,884 shares of the business services provider's stock valued at $12,511,418,000 after purchasing an additional 218,614 shares in the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Automatic Data Processing by 15.7% in the first quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after purchasing an additional 601,400 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Automatic Data Processing by 3.7% in the first quarter. Invesco Ltd. now owns 4,031,713 shares of the business services provider's stock valued at $1,231,809,000 after purchasing an additional 145,161 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Automatic Data Processing by 16.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,771,011 shares of the business services provider's stock valued at $1,103,888,000 after purchasing an additional 532,485 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Automatic Data Processing by 22.6% in the first quarter. Goldman Sachs Group Inc. now owns 3,059,100 shares of the business services provider's stock valued at $934,647,000 after purchasing an additional 564,187 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Down 1.7%

ADP stock opened at $295.97 on Monday. The company has a fifty day moving average price of $304.24 and a 200 day moving average price of $305.13. Automatic Data Processing, Inc. has a 12 month low of $267.79 and a 12 month high of $329.93. The company has a market cap of $119.88 billion, a price-to-earnings ratio of 29.66, a price-to-earnings-growth ratio of 2.71 and a beta of 0.82. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05.

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

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be given a dividend of $1.54 per share. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Insiders Place Their Bets

In other news, VP Joseph Desilva sold 4,614 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $1,368,373.98. Following the completion of the transaction, the vice president owned 17,536 shares in the company, valued at $5,200,651.52. This trade represents a 20.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP David Foskett sold 1,373 shares of the business's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $407,190.61. Following the sale, the vice president owned 11,781 shares in the company, valued at approximately $3,493,891.17. The trade was a 10.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 43,191 shares of company stock worth $12,850,464. 0.21% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on ADP shares. Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a report on Thursday, June 5th. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Mizuho boosted their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. UBS Group lowered their price target on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a report on Friday, June 13th. Finally, TD Securities boosted their price target on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $317.00.

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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