Automatic Data Processing, Inc. $ADP Shares Sold by Baxter Bros Inc.

Key Points

• Baxter Bros Inc. reduced its stake in Automatic Data Processing, Inc. by 1.5% during the second quarter, now owning 79,114 shares valued at approximately $24.4 million.
• Insider sales were noted, including VP Michael A. Bonarti who sold 8,728 shares for about $2.6 million, representing a 9.78% decrease in his position.
• Automatic Data Processing reported earnings exceeding expectations with a quarterly EPS of $2.26, and announced a quarterly dividend of $1.54, yielding 2.1% annually.

Baxter Bros Inc. cut its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.5% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 79,114 shares of the business services provider's stock after selling 1,239 shares during the period. Automatic Data Processing accounts for about 3.0% of Baxter Bros Inc.'s portfolio, making the stock its 9th largest position. Baxter Bros Inc.'s holdings in Automatic Data Processing were worth $24,399,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of ADP. Nuveen LLC acquired a new stake in Automatic Data Processing during the 1st quarter valued at approximately $661,771,000. Mackenzie Financial Corp lifted its stake in Automatic Data Processing by 128.1% during the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock valued at $484,480,000 after acquiring an additional 890,440 shares during the period. Ameriprise Financial Inc. lifted its stake in Automatic Data Processing by 15.7% during the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after acquiring an additional 601,400 shares during the period. Goldman Sachs Group Inc. lifted its stake in Automatic Data Processing by 22.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 3,059,100 shares of the business services provider's stock valued at $934,647,000 after acquiring an additional 564,187 shares during the period. Finally, Jacobs Levy Equity Management Inc. lifted its stake in Automatic Data Processing by 110.1% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 608,997 shares of the business services provider's stock valued at $186,067,000 after acquiring an additional 319,132 shares during the period. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, VP Michael A. Bonarti sold 8,728 shares of the business's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the completion of the sale, the vice president owned 80,531 shares of the company's stock, valued at approximately $24,032,866.33. The trade was a 9.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Don Mcguire sold 13,599 shares of the company's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following 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 position. The disclosure for this sale can be found here. Insiders have sold 52,516 shares of company stock worth $15,632,410 in the last 90 days. 0.20% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several brokerages have commented on ADP. Mizuho lifted their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research note on Friday, June 13th. Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday, July 31st. UBS Group decreased their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research note on Wednesday, September 17th. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Automatic Data Processing in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $316.70.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $290.70 on Thursday. The firm has a market cap of $117.76 billion, a PE ratio of 29.13, a PEG ratio of 2.68 and a beta of 0.82. The firm has a fifty day moving average of $298.04 and a 200 day moving average of $303.25. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing, Inc. has a one year low of $272.62 and a one year high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued 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 company had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm's revenue was up 6.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS 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. Investors of record on Friday, September 12th were issued a $1.54 dividend. This represents a $6.16 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Friday, September 12th. Automatic Data Processing's payout ratio is presently 61.72%.

Automatic Data Processing Company 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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