First Manhattan CO. LLC. Sells 2,618 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• First Manhattan CO. LLC. reduced its holdings in Automatic Data Processing, Inc. by 4.2%, owning 60,274 shares valued at $18.5 million after selling 2,618 shares.
• The company recently reported quarterly earnings of $2.26 per share, exceeding expectations, with a year-over-year revenue increase of 6.3%.
• Automatic Data Processing declared a quarterly dividend of $1.54 per share, highlighting a dividend yield of 2.0% and a payout ratio of 61.72%.

First Manhattan CO. LLC. cut its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 4.2% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 60,274 shares of the business services provider's stock after selling 2,618 shares during the quarter. First Manhattan CO. LLC.'s holdings in Automatic Data Processing were worth $18,509,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently made changes to their positions in the company. Activest Wealth Management boosted its position in shares of Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after purchasing an additional 78 shares in the last quarter. Clarity Asset Management Inc. purchased a new stake in shares of Automatic Data Processing in the 1st quarter worth approximately $29,000. von Borstel & Associates Inc. purchased a new stake in shares of Automatic Data Processing in the 1st quarter worth approximately $30,000. Main Street Group LTD grew its stake in shares of Automatic Data Processing by 50.7% in the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after buying an additional 38 shares during the last quarter. Finally, Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing in the 1st quarter worth approximately $35,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Performance

ADP traded up $2.33 during mid-day trading on Thursday, reaching $301.19. 1,656,890 shares of the company traded hands, compared to its average volume of 1,330,576. The company's fifty day moving average price is $304.39 and its 200-day moving average price is $305.33. Automatic Data Processing, Inc. has a 52-week low of $267.79 and a 52-week high of $329.93. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. The stock has a market capitalization of $121.99 billion, a P/E ratio of 30.18, a P/E/G ratio of 2.74 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate 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 analyst estimates of $5.05 billion. During the same quarter in the previous year, the company posted $2.09 earnings per share. Automatic Data Processing'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. On average, sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is currently 61.72%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ADP. Stifel Nicolaus upped their price target on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. Mizuho upped their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research report on Thursday, July 10th. Dbs Bank raised Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, June 5th. Two analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $317.00.

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.