Automatic Data Processing, Inc. $ADP Shares Bought by 1834 Investment Advisors Co.

Key Points

• 1834 Investment Advisors Co. increased its ADP stake by 193.8% in the third quarter, adding 6,209 shares to own 9,413 shares worth approximately $2.43 million. Institutional investors collectively hold 80.03% of ADP’s stock.
• ADP insiders sold 33,773 shares worth about $9.45 million over the past 90 days, including CEO Maria Black’s sale of 29,810 shares under a pre-arranged trading plan.
• ADP reported quarterly EPS of $2.64, topping estimates, while revenue rose 6.8% year over year to $5.47 billion. The company pays a $1.70 quarterly dividend, or $6.80 annually, yielding about 2.4%; analysts’ consensus rating remains “Hold”.

1834 Investment Advisors Co. grew its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 193.8% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 9,413 shares of the business services provider's stock after buying an additional 6,209 shares during the quarter. 1834 Investment Advisors Co.'s holdings in Automatic Data Processing were worth $2,429,000 at the end of the most recent quarter.

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

Insider Transactions at Automatic Data Processing

In related news, VP Brian Michaud sold 120 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares of the company's stock, valued at $5,158,227.40. The trade was a 0.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares of the company's stock, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,773 shares of company stock valued at $9,450,629 over the last ninety days. 0.15% of the stock is currently owned by company insiders.

Automatic Data Processing Stock Performance

Shares of ADP opened at $288.90 on Friday. The firm has a market cap of $114.48 billion, a price-to-earnings ratio of 26.41, a PEG ratio of 2.62 and a beta of 0.83. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The business's 50 day moving average is $272.99 and its two-hundred day moving average is $242.21. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $290.12.

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 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion for 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 firm's quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the company posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts forecast that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Analyst Ratings Changes

A number of equities research analysts recently weighed in on ADP shares. Morgan Stanley raised 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. Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. UBS Group boosted their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Stifel Nicolaus upped their price objective on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Finally, BMO Capital Markets raised their target price on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and an average price target of $273.50.

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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