Automatic Data Processing, Inc. $ADP Stock: Axxcess Wealth Management LLC Decreases Position

Key Points

• Axxcess Wealth Management cut its ADP position by 37.3% in the third quarter, selling 3,904 shares and retaining 6,570 shares worth approximately $1.7 million. Institutional investors still own about 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS versus the $2.59 consensus and $5.47 billion in revenue, up 6.8% year over year. The company also pays a $1.70 quarterly dividend, representing a 2.2% yield.
• Wall Street’s consensus rating remains “Hold,” with a $276.36 average price target, despite several analysts raising targets. Insiders sold approximately $9.45 million of shares over the past three months, including substantial sales by the CEO.

Axxcess Wealth Management LLC lessened its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 37.3% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 6,570 shares of the business services provider's stock after selling 3,904 shares during the period. Axxcess Wealth Management LLC's holdings in Automatic Data Processing were worth $1,695,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of ADP. Northwestern Mutual Wealth Management Co. acquired a new position in Automatic Data Processing during the second quarter worth approximately $13,283,000. Royal Capital Wealth Management LLC purchased a new stake in Automatic Data Processing in the second quarter valued at approximately $1,226,000. Canada Pension Plan Investment Board acquired a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $152,706,000. Fulton Bank N.A. boosted its holdings in shares of Automatic Data Processing by 192.0% in the second quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock valued at $1,605,000 after acquiring an additional 4,711 shares during the period. Finally, Bank of America Corp DE purchased a new position in shares of Automatic Data Processing during the second quarter worth approximately $1,231,175,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Down 1.2%

NASDAQ:ADP opened at $304.16 on Friday. 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 12 month low of $188.16 and a 12 month high of $309.40. The firm has a market capitalization of $120.52 billion, a PE ratio of 27.80, a price-to-earnings-growth ratio of 2.79 and a beta of 0.83. The business's 50-day moving average is $275.45 and its two-hundred day moving average is $245.48.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data 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 for the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business's quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the firm posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts predict that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing's payout ratio is currently 62.16%.

Insider Transactions at Automatic Data Processing

In other news, VP Joseph Desilva sold 631 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president owned 18,824 shares in the company, valued at approximately $5,324,744.88. This trade represents a 3.24% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the sale, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 33,773 shares of company stock valued at $9,450,629 in the last three months. Corporate insiders own 0.15% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ADP. Wells Fargo & Company increased their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. BMO Capital Markets increased their price target on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Stifel Nicolaus increased their price target on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Citigroup lifted their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Finally, Guggenheim boosted their price objective on shares of Automatic Data Processing from $300.00 to $340.00 and gave the company a "buy" rating in a research note on Friday. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and a consensus price target of $276.36.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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