Automatic Data Processing, Inc. $ADP Shares Sold by Rockland Trust Co.

Key Points

• Rockland Trust reduced its ADP stake by 26.1% in the second quarter, selling 7,634 shares and retaining 21,594 shares valued at approximately $4.84 million. Institutional investors and hedge funds collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS on $5.47 billion in revenue, with revenue up 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, representing a 2.5% annualized yield.
• Analyst sentiment remains mixed, with three Buy, nine Hold and one Sell rating; the consensus rating is Hold with an average price target of $273.50. ADP shares opened at $271.32, while a company vice president separately sold 2,414 shares under a pre-arranged trading plan.

Rockland Trust Co. lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 26.1% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 21,594 shares of the business services provider's stock after selling 7,634 shares during the quarter. Rockland Trust Co.'s holdings in Automatic Data Processing were worth $4,836,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its position in Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after buying an additional 3,415,576 shares during the last quarter. Cardano Risk Management B.V. boosted its holdings in shares of Automatic Data Processing by 950.1% in the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after acquiring an additional 3,223,855 shares in the last quarter. Norges Bank acquired a new position in shares of Automatic Data Processing during the fourth quarter worth about $721,738,000. Clearbridge Investments LLC increased its stake in shares of Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after acquiring an additional 964,405 shares during the period. Finally, Amundi raised its holdings in Automatic Data Processing by 27.7% during the first quarter. Amundi now owns 3,034,002 shares of the business services provider's stock worth $616,449,000 after purchasing an additional 658,932 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president directly owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on ADP. Argus reduced their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Morgan Stanley boosted their target price on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Mizuho cut their target price on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Cantor Fitzgerald lifted their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Finally, Stifel Nicolaus upped their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average target price of $273.50.

Automatic Data Processing Stock Down 0.8%

ADP stock opened at $271.32 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.04 and a debt-to-equity ratio of 0.82. The company's 50-day moving average price is $240.93 and its 200 day moving average price is $224.99. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $310.08. The company has a market cap of $107.78 billion, a P/E ratio of 24.80 and a beta of 0.81.

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

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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