Contravisory Investment Management Inc. Boosts Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Contravisory Investment Management Inc. increased its stake in Automatic Data Processing, Inc. by 6.9%, now owning 25,902 shares valued at approximately $7.99 million.
• Recent insider transactions revealed a significant decrease in ownership, with VP Joseph Desilva and VP Don Mcguire selling a combined 18,213 shares for over $5.4 million.
• Analysts have mixed views on ADP, with a consensus rating of "Hold" and an average price target of $314.73, reflecting a range of recent price objective adjustments by research firms.

Contravisory Investment Management Inc. raised its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 25,902 shares of the business services provider's stock after buying an additional 1,683 shares during the period. Contravisory Investment Management Inc.'s holdings in Automatic Data Processing were worth $7,988,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. AlphaCore Capital LLC purchased a new stake in shares of Automatic Data Processing in the first quarter valued at approximately $688,000. Golden State Wealth Management LLC boosted its holdings in shares of Automatic Data Processing by 29.6% in the first quarter. Golden State Wealth Management LLC now owns 565 shares of the business services provider's stock valued at $173,000 after purchasing an additional 129 shares during the period. Advisory Alpha LLC boosted its holdings in shares of Automatic Data Processing by 130.2% in the first quarter. Advisory Alpha LLC now owns 4,416 shares of the business services provider's stock valued at $1,349,000 after purchasing an additional 2,498 shares during the period. Meiji Yasuda Life Insurance Co raised its stake in Automatic Data Processing by 4.4% in the first quarter. Meiji Yasuda Life Insurance Co now owns 32,478 shares of the business services provider's stock worth $9,923,000 after buying an additional 1,375 shares in the last quarter. Finally, Richard P Slaughter Associates Inc raised its stake in Automatic Data Processing by 92.5% in the second quarter. Richard P Slaughter Associates Inc now owns 1,913 shares of the business services provider's stock worth $590,000 after buying an additional 919 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Insider Buying and Selling at Automatic Data Processing

In related news, VP Don Mcguire sold 13,599 shares of the business's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $4,033,055.43. Following the completion of the sale, the vice president directly owned 17,684 shares of the company's stock, valued at $5,244,543.88. The trade was a 43.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Joseph Desilva sold 4,614 shares of the business's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the completion of the sale, the vice president directly owned 17,536 shares of the company's stock, valued at approximately $5,200,651.52. This trade represents a 20.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 52,516 shares of company stock worth $15,632,410. 0.21% of the stock is currently owned by company insiders.

Automatic Data Processing Trading Up 0.3%

Automatic Data Processing stock traded up $0.82 during trading on Monday, hitting $292.82. The company had a trading volume of 648,253 shares, compared to its average volume of 1,732,351. The company's 50 day simple moving average is $301.38 and its 200-day simple moving average is $303.82. The stock has a market cap of $118.60 billion, a price-to-earnings ratio of 29.33, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a 1-year low of $272.18 and a 1-year high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted 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. The business had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company's quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Analyst Upgrades and Downgrades

ADP has been the topic of a number of recent analyst reports. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research report on Thursday, July 10th. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Morgan Stanley increased their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Royal Bank Of Canada reissued a "sector perform" rating and set a $315.00 target price on shares of Automatic Data Processing in a research note on Thursday, June 5th. Finally, UBS Group reduced their price target on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday, September 17th. Two analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and an average price target of $314.73.

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.