Automatic Data Processing, Inc. $ADP Shares Acquired by Lorne Steinberg Wealth Management Inc.

Key Points

• Lorne Steinberg Wealth Management increased its ADP stake by 56.3% in the third quarter, adding 9,786 shares for a total of 27,155 shares valued at approximately $7.0 million. Institutional investors collectively own 80.03% of ADP.
• ADP reported quarterly adjusted earnings of $2.64 per share and revenue of $5.47 billion, exceeding analyst estimates; revenue increased 6.8% year over year. The company issued fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP paid a quarterly dividend of $1.70 per share, equivalent to an annualized $6.80 and a 2.2% yield. Analysts maintain a consensus “Hold” rating with an average price target of $276.36, below the reported share price of $304.16.

Lorne Steinberg Wealth Management Inc. increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 56.3% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 27,155 shares of the business services provider's stock after acquiring an additional 9,786 shares during the quarter. Lorne Steinberg Wealth Management Inc.'s holdings in Automatic Data Processing were worth $7,008,000 as of its most recent filing with the SEC.

Other institutional investors have also modified their holdings of the company. BlackRock Inc. purchased a new position in Automatic Data Processing in the second quarter valued at about $8,097,229,000. Bank of America Corp DE purchased a new stake in Automatic Data Processing during the 2nd quarter worth approximately $1,231,175,000. Deutsche Bank AG purchased a new stake in Automatic Data Processing during the 2nd quarter worth approximately $994,937,000. Bank of New York Mellon Corp purchased a new stake in Automatic Data Processing during the 2nd quarter worth approximately $725,513,000. Finally, Legal & General Group Plc purchased a new stake in Automatic Data Processing during the 2nd quarter worth approximately $562,425,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $304.16 on Friday. 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, Inc. has a one year low of $188.16 and a one year high of $309.40. The company's 50-day simple moving average is $275.45 and its 200-day simple moving average is $245.48. The stock has a market capitalization of $120.52 billion, a price-to-earnings ratio of 27.80, a PEG ratio of 2.75 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results 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. The business had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The company's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period last year, the firm earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities analysts anticipate that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Friday, September 11th were issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Insider Transactions at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. This trade represents a 19.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The shares were 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 owned 18,824 shares of the company's stock, valued at $5,324,744.88. This trade represents a 3.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 33,773 shares of company stock worth $9,450,629. 0.15% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ADP. Cantor Fitzgerald upped their target price 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. UBS Group raised their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Citigroup lifted 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 note on Thursday, July 30th. BMO Capital Markets upped their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Finally, Morgan Stanley upped their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $276.36.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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