Automatic Data Processing, Inc. $ADP Shares Bought by Susquehanna Fundamental Investments LLC

Key Points

• Susquehanna Fundamental Investments increased its ADP position by 16.1% in the second quarter, owning 324,330 shares valued at approximately $72.6 million. Institutional investors collectively hold 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue rising 6.8% year over year. The company declared a quarterly dividend of $1.70, equivalent to a 2.4% annual yield.
• ADP shares opened at $287.48, near their 12-month high of $305.31, while analysts maintained a consensus “Hold” rating with an average price target of $273.50. Insiders sold 3,332 shares worth $898,211 over the prior 90 days.

Susquehanna Fundamental Investments LLC lifted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 16.1% in the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 324,330 shares of the business services provider's stock after acquiring an additional 45,046 shares during the period. Automatic Data Processing accounts for 1.4% of Susquehanna Fundamental Investments LLC's portfolio, making the stock its 4th biggest holding. Susquehanna Fundamental Investments LLC owned about 0.08% of Automatic Data Processing worth $72,634,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in Automatic Data Processing during the 2nd quarter valued at about $8,097,229,000. Bank of America Corp DE acquired a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $1,231,175,000. Deutsche Bank AG bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $994,937,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after buying an additional 3,415,576 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in shares of Automatic Data Processing during the second quarter worth approximately $725,513,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Activity

In related news, VP David Kwon sold 798 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the transaction, the vice president directly owned 13,193 shares in the company, valued at approximately $3,694,040. The trade was a 5.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the sale, the vice president directly owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. The trade was a 0.65% 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 sold 3,332 shares of company stock valued at $898,211 over the last 90 days. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing Stock Performance

ADP opened at $287.48 on Monday. The firm's fifty day moving average is $256.03 and its two-hundred day moving average is $227.98. The firm has a market cap of $114.20 billion, a PE ratio of 26.28 and a beta of 0.81. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $305.31. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced 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 company had revenue of $5.47 billion during the quarter, compared to analyst estimates 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 revenue was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ADP. Cantor Fitzgerald boosted their price target on Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Morgan Stanley lifted their price objective on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Citigroup upped their price target on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. 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 note on Wednesday, July 22nd. Finally, Wells Fargo & Company upped their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $273.50.

About Automatic Data Processing

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.

Want to see what other hedge funds are holding ADP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source