Automatic Data Processing, Inc. $ADP Stock: Citizens Financial Group Inc. RI Increases Position

Key Points

• Citizens Financial Group increased its ADP stake by 18.7% in the third quarter, while other institutional investors also added positions. Institutional investors and hedge funds collectively own 80.03% of the company.
• Analysts remain broadly cautious, with ADP carrying a consensus “Hold” rating and an average price target of $276.36, despite several firms raising their targets and Guggenheim issuing a Buy rating.
• ADP reported quarterly EPS of $2.64, exceeding estimates, and revenue of $5.47 billion, up 6.8% year over year. The company also pays a $1.70 quarterly dividend, equivalent to a 2.2% yield.

Citizens Financial Group Inc. RI grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 18.7% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 29,138 shares of the business services provider's stock after buying an additional 4,599 shares during the quarter. Citizens Financial Group Inc. RI's holdings in Automatic Data Processing were worth $7,544,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in the company. One Wealth Capital Management LLC bought a new stake in shares of Automatic Data Processing in the 3rd quarter worth approximately $378,000. Lorne Steinberg Wealth Management Inc. grew its stake in shares of Automatic Data Processing by 56.3% in the third quarter. Lorne Steinberg Wealth Management Inc. now owns 27,155 shares of the business services provider's stock worth $7,008,000 after purchasing an additional 9,786 shares in the last quarter. Mascoma Wealth Management LLC raised its stake in shares of Automatic Data Processing by 3.2% during the third quarter. Mascoma Wealth Management LLC now owns 1,570 shares of the business services provider's stock valued at $405,000 after purchasing an additional 49 shares in the last quarter. Gibbs Wealth Management raised its stake in shares of Automatic Data Processing by 135.0% during the third quarter. Gibbs Wealth Management now owns 4,870 shares of the business services provider's stock valued at $1,257,000 after purchasing an additional 2,798 shares in the last quarter. Finally, Winthrop Advisory Group LLC acquired a new position in shares of Automatic Data Processing during the third quarter valued at approximately $281,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms have issued reports on ADP. Guggenheim upped their price target on Automatic Data Processing from $300.00 to $340.00 and gave the company a "buy" rating in a report on Friday. Stifel Nicolaus boosted their price objective on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. BMO Capital Markets boosted their target price on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. UBS Group raised their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Finally, Morgan Stanley upped their price objective on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Automatic Data Processing presently has an average rating of "Hold" and a consensus price target of $276.36.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP opened at $304.16 on Monday. The business's fifty day moving average price is $275.45 and its two-hundred day moving average price is $245.77. 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 fifty-two week low of $188.16 and a fifty-two week high of $309.40. The stock has a market capitalization of $120.52 billion, a price-to-earnings ratio of 27.80, a price-to-earnings-growth ratio of 2.75 and a beta of 0.83.

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 EPS for the quarter, beating the consensus estimate of $2.59 by $0.05. The business had revenue of $5.47 billion for 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%. Automatic Data Processing's revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, analysts predict that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Insider Transactions at Automatic Data Processing

In other news, VP Brian Michaud sold 120 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares in the company, valued at $5,158,227.40. This trade represents a 0.65% decrease in their position. The sale was disclosed in a legal 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 company's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president owned 18,824 shares in the company, valued at $5,324,744.88. This represents a 3.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,773 shares of company stock worth $9,450,629 in the last 90 days. 0.15% of the stock is owned by corporate insiders.

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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