Automatic Data Processing, Inc. $ADP Shares Sold by Mechanics Bank Trust Department

Key Points

• Mechanics Bank Trust Department reduced its holdings in Automatic Data Processing, Inc. by 12.7%, selling 2,828 shares, with a total holding value of approximately $5.97 million at the end of the second quarter.
• Multiple institutional investors increased their positions in ADP, with Richard P Slaughter Associates Inc. significantly growing its holdings by 92.5% in the second quarter.
• Automatic Data Processing announced a quarterly dividend of $1.54, representing a 2.1% yield, with an ex-dividend date of September 12th.

Mechanics Bank Trust Department cut its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 12.7% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 19,365 shares of the business services provider's stock after selling 2,828 shares during the period. Mechanics Bank Trust Department's holdings in Automatic Data Processing were worth $5,972,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in ADP. GAMMA Investing LLC increased its stake in Automatic Data Processing by 34,655.1% during the 1st quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock valued at $886,345,000 after purchasing an additional 2,892,660 shares in the last quarter. Nuveen LLC purchased a new stake in Automatic Data Processing in the first quarter valued at approximately $661,771,000. Mackenzie Financial Corp raised its position in 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 worth $484,480,000 after buying an additional 890,440 shares during the last quarter. Ameriprise Financial Inc. raised its position in 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 worth $1,348,805,000 after buying an additional 601,400 shares during the last quarter. Finally, SG Americas Securities LLC lifted its stake in Automatic Data Processing by 811.7% during the 1st quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock valued at $194,806,000 after acquiring an additional 567,664 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

ADP stock traded up $1.66 during midday trading on Monday, reaching $293.66. The stock had a trading volume of 2,134,587 shares, compared to its average volume of 1,719,206. Automatic Data Processing, Inc. has a 52-week low of $272.18 and a 52-week high of $329.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. The company's fifty day simple moving average is $301.19 and its 200 day simple moving average is $303.73. The company has a market cap of $118.94 billion, a price-to-earnings ratio of 29.42, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82.

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

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be issued a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is currently 61.72%.

Analyst Ratings Changes

A number of research firms have weighed in on ADP. Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, June 5th. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a research report on Thursday, July 10th. Mizuho upped their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Morgan Stanley lifted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Finally, UBS Group lowered their price target on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a report on Wednesday, September 17th. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $314.73.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 1,373 shares of the firm's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $407,190.61. Following the completion of the sale, the vice president directly owned 11,781 shares of the company's stock, valued at $3,493,891.17. This trade represents a 10.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher D'ambrosio sold 597 shares of the business's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $296.90, for a total transaction of $177,249.30. Following the transaction, the vice president directly owned 10,541 shares in the company, valued at approximately $3,129,622.90. The trade was a 5.36% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 52,516 shares of company stock valued at $15,632,410. 0.21% of the stock is currently owned by company insiders.

Automatic Data Processing Profile

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.