Automatic Data Processing, Inc. $ADP Shares Bought by LGT Fund Management Co Ltd.

Key Points

• LGT Fund Management increased its holdings in Automatic Data Processing, Inc. by 77.1% during the 2nd quarter, now owning 6,200 shares valued at approximately $1.91 million.
• Insider trading activity includes significant sales by VPs David Foskett and Joseph Desilva, who sold shares for total transactions of over $1.77 million, representing a 10% and 20% decrease in their positions, respectively.
• Automatic Data Processing recently declared a quarterly dividend of $1.54 per share, resulting in a 2.1% dividend yield, while also reporting strong quarterly earnings that exceeded analysts' estimates.

LGT Fund Management Co Ltd. increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 77.1% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 6,200 shares of the business services provider's stock after buying an additional 2,700 shares during the quarter. LGT Fund Management Co Ltd.'s holdings in Automatic Data Processing were worth $1,912,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Activest Wealth Management grew its stake in shares of Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after purchasing an additional 78 shares during the period. Clarity Asset Management Inc. acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $29,000. von Borstel & Associates Inc. acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $30,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $35,000. Finally, Abound Wealth Management grew its stake in shares of Automatic Data Processing by 58.1% during the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after purchasing an additional 43 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Foskett sold 1,373 shares of Automatic Data Processing stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $407,190.61. Following the transaction, the vice president owned 11,781 shares in the company, valued at $3,493,891.17. The trade was a 10.44% decrease in their position. The transaction 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 Automatic Data Processing stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $1,368,373.98. Following the transaction, the vice president owned 17,536 shares in the company, valued at approximately $5,200,651.52. This represents a 20.83% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 52,516 shares of company stock worth $15,632,410. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing Trading Up 0.5%

Shares of ADP stock opened at $291.31 on Friday. The stock's fifty day moving average is $299.08 and its two-hundred day moving average is $303.40. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a market capitalization of $118.01 billion, a P/E ratio of 29.19, a PEG ratio of 2.67 and a beta of 0.82. Automatic Data Processing, Inc. has a fifty-two week low of $272.62 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The company had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same quarter last year, the firm posted $2.09 EPS. The firm's revenue for the quarter was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were issued 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 was Friday, September 12th. Automatic Data Processing's payout ratio is currently 61.72%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on ADP shares. UBS Group dropped their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 17th. Morgan Stanley lifted their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Weiss Ratings reissued a "buy (b)" rating on shares of Automatic Data Processing in a research note on Saturday, September 27th. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research note on Thursday, July 10th. Finally, Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and an average price target of $316.70.

Automatic Data Processing Profile

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.

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