Automatic Data Processing, Inc. $ADP Shares Sold by Benjamin Edwards Inc.

Key Points

• Benjamin Edwards Inc. reduced its ADP stake by 3.7% in the second quarter, selling 8,460 shares and retaining 218,370 shares valued at approximately $48.9 million. Institutional investors collectively own 80.03% of the company.
• Analysts remain generally cautious, with ADP carrying a consensus “Hold” rating and an average price target of $273.50, despite several firms raising their targets.
• ADP exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $5.47 billion in revenue, while announcing a quarterly dividend of $1.70 per share, equivalent to a 2.4% annual yield.

Benjamin Edwards Inc. decreased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.7% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 218,370 shares of the business services provider's stock after selling 8,460 shares during the quarter. Benjamin Edwards Inc. owned approximately 0.05% of Automatic Data Processing worth $48,916,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of ADP. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth approximately $25,000. Cornerstone Financial Management LLC purchased a new position in Automatic Data Processing in the fourth quarter worth approximately $26,000. Bard Associates Inc. acquired a new position in Automatic Data Processing during the 4th quarter worth approximately $28,000. Whipplewood Advisors LLC grew its holdings in Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after acquiring an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc purchased a new stake in shares of Automatic Data Processing in the 4th quarter valued at approximately $33,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Activity at Automatic Data Processing

In related news, VP David Kwon sold 798 shares of the company's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the sale, the vice president owned 13,193 shares in the company, valued at $3,694,040. This represents a 5.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the sale, the vice president owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 three months. Corporate insiders own 0.20% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. UBS Group increased their target price on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. TD Cowen raised their price target on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research note on Monday, July 6th. BMO Capital Markets lifted their price target on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Finally, Morgan Stanley upped their price objective on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $287.48 on Friday. The stock's 50-day moving average is $256.03 and its two-hundred day moving average is $227.97. 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, Inc. has a 1 year low of $188.16 and a 1 year high of $305.31. The firm has a market cap of $114.21 billion, a price-to-earnings ratio of 26.28 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. The business had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The business's quarterly revenue was up 6.8% on a year-over-year basis. During the same period 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. Analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing Company Profile

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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