Automatic Data Processing, Inc. $ADP Shares Sold by Conning Inc.

Key Points

• Conning Inc. reduced its holdings in Automatic Data Processing, Inc. (ADP) by 6.7% during the second quarter, owning 106,827 shares worth approximately $32.9 million.
• ADP reported earnings per share (EPS) of $2.26 for the quarter, exceeding analysts' expectations, with a year-over-year revenue increase of 6.3%.
• The company announced a quarterly dividend of $1.54 per share, representing an annualized rate of $6.16, with a dividend yield of 2.2%.

Conning Inc. decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6.7% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 106,827 shares of the business services provider's stock after selling 7,661 shares during the period. Conning Inc.'s holdings in Automatic Data Processing were worth $32,945,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently made changes to their positions in ADP. Nuveen LLC purchased a new position in shares of Automatic Data Processing during the 1st quarter valued at approximately $661,771,000. Mackenzie Financial Corp lifted its position in shares of 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 buying an additional 890,440 shares in the last quarter. Ameriprise Financial Inc. lifted its position in shares of 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 buying an additional 601,400 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of 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 buying an additional 564,187 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. lifted its position in shares of 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 buying an additional 319,132 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Down 0.2%

Shares of ADP opened at $285.19 on Friday. Automatic Data Processing, Inc. has a 52-week low of $272.62 and a 52-week high of $329.93. The company has a market capitalization of $115.53 billion, a PE ratio of 28.58, a price-to-earnings-growth ratio of 2.62 and a beta of 0.82. The stock has a fifty day simple moving average of $297.26 and a two-hundred day simple moving average of $303.06. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The business had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. During the same period last year, the company earned $2.09 EPS. The company's revenue for the quarter was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th were paid a $1.54 dividend. The ex-dividend date of this dividend was Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.2%. Automatic Data Processing's dividend payout ratio (DPR) is 61.72%.

Analysts Set New Price Targets

A number of brokerages have weighed in on ADP. Mizuho raised their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. UBS Group decreased their price objective on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a report on Wednesday, September 17th. Weiss Ratings restated a "buy (b)" rating on shares of Automatic Data Processing in a report on Wednesday. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Finally, Morgan Stanley raised their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $316.70.

Insider Activity

In related news, VP Joseph Desilva sold 4,614 shares of the firm'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 $1,368,373.98. Following the completion of the sale, the vice president directly owned 17,536 shares of the company's stock, valued at approximately $5,200,651.52. This trade represents a 20.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Don Mcguire sold 13,599 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value 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 ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 52,516 shares of company stock worth $15,632,410. 0.20% of the stock is currently owned by corporate insiders.

About Automatic Data Processing

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.

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 and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.