TCV Trust & Wealth Management Inc. Sells 3,668 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• TCV Trust & Wealth Management Inc. has reduced its stake in Automatic Data Processing, Inc. by 6.2%, owning 55,775 shares valued at approximately $17.2 million.
• Multiple institutional investors, including Vanguard and Ameriprise Financial, have increased their holdings, with Goldman Sachs raising its position by 22.6% in the first quarter.
• Automatic Data Processing recently announced a quarterly dividend of $1.54, which amounts to an annual yield of 2.1%.

TCV Trust & Wealth Management Inc. cut its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6.2% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 55,775 shares of the business services provider's stock after selling 3,668 shares during the period. Automatic Data Processing comprises approximately 1.5% of TCV Trust & Wealth Management Inc.'s investment portfolio, making the stock its 16th largest holding. TCV Trust & Wealth Management Inc.'s holdings in Automatic Data Processing were worth $17,201,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also bought and sold shares of ADP. Activest Wealth Management lifted its stake in Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after acquiring an additional 78 shares in the last quarter. Clarity Asset Management Inc. bought a new position in Automatic Data Processing during the 1st quarter valued at $29,000. von Borstel & Associates Inc. bought a new position in Automatic Data Processing during the 1st quarter valued at $30,000. Y.D. More Investments Ltd bought a new position in Automatic Data Processing during the 1st quarter valued at $35,000. Finally, Abound Wealth Management lifted its stake in Automatic Data Processing by 58.1% during the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after acquiring an additional 43 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Price Performance

Shares of ADP traded up $1.05 during midday trading on Friday, hitting $292.00. 4,039,574 shares of the company traded hands, compared to its average volume of 1,574,773. The stock has a 50-day moving average of $301.38 and a 200-day moving average of $303.81. Automatic Data Processing, Inc. has a one year low of $272.18 and a one year high of $329.93. The firm has a market cap of $118.27 billion, a P/E ratio of 29.26, a PEG ratio of 2.67 and a beta of 0.82. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share 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 firm had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. During the same period in the prior year, the business posted $2.09 earnings per share. The company's revenue 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. As a group, sell-side analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Wall Street Analysts Forecast Growth

ADP has been the topic of several recent analyst reports. Mizuho raised their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research note on Friday, June 13th. Stifel Nicolaus lifted their target price 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. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research note on Thursday, July 10th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 target price on shares of Automatic Data Processing in a research note on Thursday, June 5th. Finally, UBS Group lowered their target price on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research note on Wednesday. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $314.73.

Insider Activity

In other news, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the sale, the vice president directly owned 17,536 shares in the company, valued at $5,200,651.52. This represents a 20.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP David Foskett sold 1,373 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the sale, the vice president owned 11,781 shares in the company, valued at approximately $3,493,891.17. This represents a 10.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 52,516 shares of company stock valued at $15,632,410. 0.21% of the stock is currently owned by 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.