Automatic Data Processing, Inc. $ADP Shares Bought by Groupe la Francaise

Key Points

• Groupe la Francaise increased its ADP stake by 19% in the second quarter, acquiring 4,315 additional shares for a total holding worth approximately $6.1 million. Institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in adjusted EPS and $5.47 billion in revenue, with revenue rising 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, equivalent to a 2.4% yield.
• Analysts maintain a generally cautious outlook, with ADP receiving a consensus “Hold” rating and an average price target of $273.50, below its reported opening price of $277.62.

Groupe la Francaise increased its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 19.0% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 27,077 shares of the business services provider's stock after acquiring an additional 4,315 shares during the period. Groupe la Francaise's holdings in Automatic Data Processing were worth $6,064,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in ADP. Imprint Wealth LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Automatic Data Processing in the 4th quarter worth $26,000. Bard Associates Inc. bought a new stake in shares of Automatic Data Processing in the 4th quarter worth $28,000. Whipplewood Advisors LLC lifted its holdings in shares of Automatic Data Processing by 2,740.0% in the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after buying an additional 137 shares during the period. Finally, Prosperity Bancshares Inc acquired a new stake in shares of Automatic Data Processing in the fourth quarter valued at $33,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $277.62 on Tuesday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $302.68. The company has a market cap of $110.29 billion, a PE ratio of 25.38, a PEG ratio of 2.52 and a beta of 0.82. The stock's 50-day moving average price is $263.42 and its two-hundred day moving average price is $230.79.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion during 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 business's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period last year, the company posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Dividend Announcement

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

Insider Activity

In other Automatic Data Processing news, VP Brian Michaud sold 120 shares of the business's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was 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 trade represents a 26.99% decrease in their position. 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 valued at $9,450,629 in the last 90 days. Company insiders own 0.20% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on ADP. BMO Capital Markets lifted their target price on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. UBS Group raised their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. TD Cowen boosted their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a report on Monday, July 6th. Citigroup increased their target price 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. Finally, Wells Fargo & Company lifted their price target on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $273.50.

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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