Automatic Data Processing, Inc. $ADP Shares Sold by Truist Financial Corp

Key Points

• Truist Financial Corp reduced its stake in Automatic Data Processing, Inc. by 3.9%, holding 302,331 shares valued at approximately $93.2 million after selling 12,192 shares in Q2.
• Analysts have mixed ratings for Automatic Data Processing, with a consensus rating of "Hold" and an average target price of $316.70, while UBS recently cut their price objective from $315.00 to $290.00.
• The company recently announced a quarterly dividend of $1.54, equating to an annualized dividend of $6.16, and a yield of 2.1%, with a payout ratio of 61.72%.

Truist Financial Corp cut its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.9% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 302,331 shares of the business services provider's stock after selling 12,192 shares during the quarter. Truist Financial Corp owned about 0.07% of Automatic Data Processing worth $93,239,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Activest Wealth Management increased its position in shares of 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 worth $25,000 after purchasing an additional 78 shares during the last quarter. Clarity Asset Management Inc. acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth about $29,000. von Borstel & Associates Inc. acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth about $30,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth about $35,000. Finally, Abound Wealth Management increased its position in shares of Automatic Data Processing by 58.1% during the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after purchasing an additional 43 shares during the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. UBS Group cut their price objective on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday, September 17th. Royal Bank Of Canada reissued a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a research report on Thursday, June 5th. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a research report on Thursday, July 10th. Stifel Nicolaus raised their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Finally, Morgan Stanley raised their target price on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Two research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $316.70.

Insiders Place Their Bets

In other news, VP David Foskett sold 1,373 shares of Automatic Data Processing stock in a transaction dated 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 transaction, the vice president owned 11,781 shares in the company, valued at approximately $3,493,891.17. This trade represents a 10.44% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $1,368,373.98. Following the sale, the vice president owned 17,536 shares of the company's stock, valued at approximately $5,200,651.52. The trade was a 20.83% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 52,516 shares of company stock worth $15,632,410. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing Stock Performance

Shares of ADP opened at $291.61 on Thursday. The stock has a 50-day simple moving average of $299.76 and a 200-day simple moving average of $303.45. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $118.13 billion, a PE ratio of 29.22, a PEG ratio of 2.69 and a beta of 0.82. Automatic Data Processing, Inc. has a 1 year low of $272.62 and a 1 year high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate 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 return on equity of 72.84% and a net margin of 19.84%.The business's quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter last year, the business posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, 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 disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were paid a $1.54 dividend. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is presently 61.72%.

Automatic Data Processing Company 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.

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