Automatic Data Processing, Inc. $ADP Shares Sold by Beacon Financial Group

Key Points

• Beacon Financial Group has reduced its holdings in Automatic Data Processing, Inc. by 47.4%, now owning 1,280 shares valued at approximately $395,000.
• Automatic Data Processing reported a quarterly earnings per share of $2.26, exceeding analysts' expectations, and achieved a year-over-year revenue increase of 6.3%.
• The company has declared a quarterly dividend of $1.54 per share, with a payout ratio of 61.72%, representing an annualized yield of 2.1%.

Beacon Financial Group lowered its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 47.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,280 shares of the business services provider's stock after selling 1,152 shares during the quarter. Beacon Financial Group's holdings in Automatic Data Processing were worth $395,000 as of its most recent SEC filing.

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

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $288.69 on Wednesday. The company has a market cap of $116.93 billion, a P/E ratio of 28.93, a P/E/G ratio of 2.66 and a beta of 0.82. Automatic Data Processing, Inc. has a twelve month low of $272.18 and a twelve month high of $329.93. The company's 50-day moving average price is $302.28 and its 200-day moving average price is $304.30. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. The firm had revenue of $5.13 billion for 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%. Automatic Data Processing's quarterly revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the business posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a dividend of $1.54 per share. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's payout ratio is presently 61.72%.

Insider Activity

In related news, CEO Maria Black sold 23,605 shares of the business's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the transaction, the chief executive officer directly owned 76,161 shares in the company, valued at approximately $22,720,349.52. The trade was a 23.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP David Foskett sold 1,373 shares of the business's stock in a transaction dated 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock valued at $15,632,410 in the last ninety days. 0.21% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ADP. TD Securities increased their price target on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. Mizuho increased their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. Stifel Nicolaus increased their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $315.00 target price on shares of Automatic Data Processing in a research report on Thursday, June 5th. Two equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $317.00.

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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