Automatic Data Processing, Inc. $ADP Shares Purchased by Flputnam Investment Management Co.

Key Points

• Flputnam Investment Management increased its ADP holdings by 58% in the second quarter, bringing its position to 36,595 shares worth approximately $8.2 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• ADP reported quarterly EPS of $2.64, beating estimates of $2.59, while revenue rose 6.8% year over year to $5.47 billion. The company issued fiscal 2027 EPS guidance of $12.12–$12.34.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, despite ADP shares opening at $287.48. The company also declared a quarterly dividend of $1.70 per share, representing a 2.4% annualized yield.

Flputnam Investment Management Co. boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 58.0% during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 36,595 shares of the business services provider's stock after purchasing an additional 13,436 shares during the quarter. Flputnam Investment Management Co.'s holdings in Automatic Data Processing were worth $8,195,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of Automatic Data Processing during the second quarter worth approximately $8,097,229,000. Bank of America Corp DE acquired a new stake in Automatic Data Processing in the second quarter valued at $1,231,175,000. Deutsche Bank AG bought a new position in Automatic Data Processing during the 2nd quarter valued at $994,937,000. Northwestern Mutual Wealth Management Co. grew its holdings in Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after acquiring an additional 3,415,576 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Automatic Data Processing in the second quarter valued at about $725,513,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the company's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares in the company, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 3,332 shares of company stock valued at $898,211. Corporate insiders own 0.20% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on ADP shares. Argus cut their price objective on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Wells Fargo & Company boosted their price target on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Citigroup upped their price target on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. UBS Group lifted their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Finally, TD Cowen increased 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. Three analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and an average target price of $273.50.

Automatic Data Processing Stock Up 1.0%

NASDAQ:ADP opened at $287.48 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock has a 50 day moving average of $256.03 and a 200-day moving average of $227.97. The firm has a market capitalization of $114.21 billion, a PE ratio of 26.28 and a beta of 0.81. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $305.31.

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, 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 business had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter last year, the business posted $2.26 EPS. The business's revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. 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 declared 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 of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. Automatic Data Processing's payout ratio is 62.16%.

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.

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