Automatic Data Processing, Inc. $ADP Shares Sold by TD Waterhouse Canada Inc.

Key Points

• TD Waterhouse Canada reduced its ADP stake by 20.8% in the second quarter, selling 3,876 shares and retaining 14,797 shares valued at approximately $3.49 million. Hedge funds and other institutional investors collectively own 80.03% of the company.
• ADP insiders sold 33,773 shares worth about $9.45 million over the past three months, including CEO Maria Black’s sale of 29,810 shares under a pre-arranged trading plan.
• ADP reported quarterly earnings of $2.64 per share, beating estimates, while revenue rose 6.8% year over year to $5.47 billion. Analysts maintain a consensus “Hold” rating with an average price target of $273.50, and the company declared a $1.70 quarterly dividend.

TD Waterhouse Canada Inc. trimmed its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 20.8% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 14,797 shares of the business services provider's stock after selling 3,876 shares during the quarter. TD Waterhouse Canada Inc.'s holdings in Automatic Data Processing were worth $3,488,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Thrive Wealth Management LLC lifted its stake in Automatic Data Processing by 3.5% during the second quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider's stock worth $243,000 after purchasing an additional 37 shares during the period. Cary Street Partners Investment Advisory LLC grew its stake in shares of Automatic Data Processing by 1.7% in the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 2,784 shares of the business services provider's stock valued at $716,000 after purchasing an additional 47 shares during the period. Guardian Partners Inc. raised its holdings in shares of Automatic Data Processing by 0.9% in the 1st quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider's stock worth $1,044,000 after buying an additional 47 shares in the last quarter. Reston Wealth Management LLC raised its holdings in shares of Automatic Data Processing by 5.8% in the 4th quarter. Reston Wealth Management LLC now owns 892 shares of the business services provider's stock worth $229,000 after buying an additional 49 shares in the last quarter. Finally, LMR Partners LLP lifted its position in shares of Automatic Data Processing by 1.7% during the 2nd quarter. LMR Partners LLP now owns 3,047 shares of the business services provider's stock worth $940,000 after buying an additional 50 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, CEO Maria Black sold 29,810 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the transaction, the chief executive officer owned 80,624 shares in the company, valued at $22,648,087.84. This represents a 26.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the sale, the vice president directly owned 18,824 shares in the company, valued at approximately $5,324,744.88. This represents a 3.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 33,773 shares of company stock valued at $9,450,629. 0.20% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several brokerages recently commented on ADP. Weiss Ratings raised Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. TD Cowen lifted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a report on Monday, July 6th. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. UBS Group boosted their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Finally, Stifel Nicolaus upped their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $273.50.

Automatic Data Processing Price Performance

Shares of ADP opened at $277.62 on Tuesday. The company has a market capitalization of $110.29 billion, a P/E ratio of 25.38, a PEG ratio of 2.52 and a beta of 0.82. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $302.68. The business's 50 day simple moving average is $263.42 and its 200-day simple moving average is $230.79.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion during the quarter, compared to analysts' expectations of $5.44 billion. During the same period last year, the firm posted $2.26 EPS. The business's 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. As a group, sell-side analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio is presently 62.16%.

About Automatic Data Processing

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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