Automatic Data Processing, Inc. $ADP Shares Sold by Legacy Wealth Asset Management LLC

Key Points

• Legacy Wealth Asset Management cut its ADP position by 61.1% in the third quarter, selling 4,655 shares and retaining 2,967 shares valued at approximately $766,000. Institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations with EPS of $2.64 versus the $2.59 consensus and revenue of $5.47 billion, up 6.8% year over year. The company reported a 20.11% net margin and set fiscal 2027 EPS guidance at $12.12–$12.34.
• ADP paid a quarterly dividend of $1.70 per share, equivalent to an annualized $6.80 payout and a 2.5% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Legacy Wealth Asset Management LLC trimmed its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 61.1% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,967 shares of the business services provider's stock after selling 4,655 shares during the quarter. Legacy Wealth Asset Management LLC's holdings in Automatic Data Processing were worth $766,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the stock. Compass Capital Management Inc. boosted its stake in shares of Automatic Data Processing by 3.0% in the 4th quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock worth $52,400,000 after buying an additional 5,899 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in shares of Automatic Data Processing during the 2nd quarter valued at approximately $13,283,000. Royal Capital Wealth Management LLC purchased a new stake in Automatic Data Processing in the 2nd quarter worth about $1,226,000. Canada Pension Plan Investment Board purchased a new stake in Automatic Data Processing in the 2nd quarter valued at about $152,706,000. Finally, Fulton Bank N.A. raised its position in Automatic Data Processing by 192.0% during the 2nd quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock valued at $1,605,000 after purchasing an additional 4,711 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other news, VP David Kwon sold 798 shares of the firm's stock in a transaction on Thursday, August 20th. The stock was 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 of the company's stock, valued at $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian Michaud sold 120 shares of Automatic Data Processing stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the sale, the vice president directly owned 18,442 shares of the company's stock, valued at $5,158,227.40. This trade represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,773 shares of company stock worth $9,450,629 in the last quarter. 0.15% of the stock is currently owned by corporate insiders.

Automatic Data Processing Trading Up 0.1%

Shares of Automatic Data Processing stock opened at $270.88 on Friday. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $288.00. The stock has a market cap of $107.34 billion, a PE ratio of 24.76, a price-to-earnings-growth ratio of 2.45 and a beta of 0.83. The company has a 50-day moving average of $272.01 and a two-hundred day moving average of $239.53. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. During the same period last year, the company earned $2.26 earnings per share. The company's quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, research analysts anticipate that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were paid a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.5%. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Cantor Fitzgerald boosted their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a report on Monday, August 3rd. Stifel Nicolaus raised their target price on Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Wells Fargo & Company raised their price target on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Citigroup upped their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Finally, UBS Group boosted their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Profile

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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