Automatic Data Processing, Inc. $ADP Shares Sold by Ferguson Wellman Capital Management Inc.

Key Points

• Ferguson Wellman Capital Management reduced its ADP stake by 12.5% in the third quarter, selling 4,509 shares and retaining 31,647 shares worth approximately $8.17 million. Institutional investors collectively own 80.03% of ADP.
• ADP reported quarterly earnings of $2.64 per share, exceeding estimates of $2.59, while revenue rose 6.8% year over year to $5.47 billion. The company also declared a quarterly dividend of $1.70, or $6.80 annually, yielding about 2.6%.
• Shares recently traded at $258.70, while analysts maintain a consensus “Hold” rating and an average price target of $273.50. Company insiders sold 33,773 shares worth roughly $9.45 million over the past three months, primarily under pre-arranged trading plans.

Ferguson Wellman Capital Management Inc. decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 12.5% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 31,647 shares of the business services provider's stock after selling 4,509 shares during the quarter. Ferguson Wellman Capital Management Inc.'s holdings in Automatic Data Processing were worth $8,167,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of the stock. BlackRock Inc. bought a new position in shares of Automatic Data Processing in the 2nd quarter worth about $8,097,229,000. State Street Corp lifted its holdings in Automatic Data Processing by 0.7% during the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock worth $4,903,769,000 after acquiring an additional 133,039 shares during the period. Capital Research Global Investors boosted its holdings in shares of Automatic Data Processing by 4.6% in the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock worth $2,159,088,000 after buying an additional 372,413 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $1,231,175,000. Finally, Deutsche Bank AG purchased a new position in shares of Automatic Data Processing during the 2nd quarter valued at $994,937,000. 80.03% of the stock is owned by institutional investors.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the business's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the sale, the vice president directly owned 9,660 shares of the company's stock, valued at $2,565,889.20. The trade was a 19.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the company's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer owned 80,624 shares of the company's stock, valued at $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 33,773 shares of company stock worth $9,450,629 over the last three months. 0.15% of the stock is owned by company insiders.

Automatic Data Processing Stock Up 0.4%

Shares of ADP traded up $1.02 during mid-day trading on Monday, reaching $258.70. The company had a trading volume of 445,595 shares, compared to its average volume of 2,917,210. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $293.51. The firm has a 50-day moving average price of $271.90 and a 200 day moving average price of $237.76. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market capitalization of $102.51 billion, a price-to-earnings ratio of 23.64, a price-to-earnings-growth ratio of 2.33 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter in the prior year, the firm earned $2.26 earnings per share. The firm's revenue for the quarter was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, sell-side analysts forecast that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing's payout ratio is 62.16%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. TD Cowen lifted their target price on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a report on Monday, July 6th. Cantor Fitzgerald upped their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, September 22nd. Wells Fargo & Company upped their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Finally, Citigroup increased their price objective 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. 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. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $273.50.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management and business outsourcing solutions. The company helps organizations manage payroll, tax withholding and compliance, employee benefits, time and attendance, workforce management, talent acquisition, and human resources administration.

ADP offers cloud-based platforms and related services designed for businesses of different sizes, from small companies to large multinational employers. Its offerings include payroll and HR software, workforce analytics, talent management tools, retirement and insurance-related administration, and professional employer organization services through ADP TotalSource.

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