Automatic Data Processing, Inc. $ADP Shares Bought by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System dramatically increased its ADP position by 140.3 million shares in the second quarter, bringing its holdings to 140.97 million shares valued at approximately $31.57 billion, or 35.49% of the company.
• Analysts raised several price targets, but ADP maintains a consensus “Hold” rating with an average target of $273.50. Shares recently opened at $277.62, within reach of the stock’s 12-month high of $302.68.
• ADP reported quarterly earnings of $2.64 per share and revenue of $5.47 billion, beating estimates and achieving 6.8% year-over-year revenue growth. The company also declared a quarterly dividend of $1.70 per share, representing a 2.4% annualized yield.

California State Teachers Retirement System grew its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 22,166.8% in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 140,971,822 shares of the business services provider's stock after buying an additional 140,338,719 shares during the quarter. California State Teachers Retirement System owned 35.49% of Automatic Data Processing worth $31,570,640,000 as of its most recent filing with the SEC.

Other hedge funds also recently made changes to their positions in the company. Imprint Wealth LLC purchased a new position in Automatic Data Processing in the third quarter worth $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Automatic Data Processing during the 4th quarter worth $26,000. Bard Associates Inc. acquired a new position in shares of Automatic Data Processing during the 4th quarter worth $28,000. Prosperity Bancshares Inc acquired a new position in shares of Automatic Data Processing during the 4th quarter worth $33,000. Finally, Wilkerson Advisory Group LLC purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at about $36,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insiders Place Their Bets

In related news, CEO Maria Black sold 29,810 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the transaction, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed 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 stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the transaction, the vice president owned 18,824 shares in the company, valued at approximately $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 33,773 shares of company stock worth $9,450,629 in the last three months. Company insiders own 0.20% of the company's stock.

Analysts Set New Price Targets

ADP has been the subject of several recent analyst reports. Citigroup raised their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Guggenheim increased their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a report on Thursday, July 30th. BMO Capital Markets increased their target price 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. Cantor Fitzgerald lifted their price target on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Finally, Stifel Nicolaus boosted their price target on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. 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's stock. According to MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $277.62 on Tuesday. The firm's 50-day moving average is $263.42 and its two-hundred day moving average is $230.79. The company has a market capitalization of $110.29 billion, a PE ratio of 25.38, a price-to-earnings-growth ratio of 2.52 and a beta of 0.82. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $302.68. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released 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. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter last year, the business posted $2.26 earnings per share. Automatic Data Processing's revenue was up 6.8% compared to the same quarter last year. 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 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a dividend of $1.70 per share. The ex-dividend date is Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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