Automatic Data Processing, Inc. $ADP Stock: First Citizens Bank & Trust Co. Raises Stake

Key Points

• First Citizens Bank & Trust Co. increased its ADP stake by 48.1% in the third quarter, bringing its holdings to 17,857 shares valued at approximately $4.6 million. Institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations with earnings of $2.64 per share and revenue of $5.47 billion, while revenue rose 6.8% year over year. The company reported a 20.11% net margin and set fiscal 2027 EPS guidance at $12.12–$12.34.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, compared with shares trading near $280.32. ADP also pays a quarterly dividend of $1.70 per share, equivalent to a 2.4% annual yield.

First Citizens Bank & Trust Co. raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 48.1% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 17,857 shares of the business services provider's stock after acquiring an additional 5,797 shares during the quarter. First Citizens Bank & Trust Co.'s holdings in Automatic Data Processing were worth $4,608,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $8,097,229,000. Bank of America Corp DE bought a new position in shares of Automatic Data Processing in the 2nd quarter worth $1,231,175,000. Deutsche Bank AG acquired a new stake in shares of Automatic Data Processing during the second quarter worth $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Automatic Data Processing by 3.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider's stock worth $952,112,000 after purchasing an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Automatic Data Processing in the second quarter valued at about $725,513,000. 80.03% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have commented on ADP. BMO Capital Markets upped their target price on shares of 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. Citigroup lifted their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Cantor Fitzgerald boosted their price target on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. TD Cowen raised their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research note on Monday, July 6th. Finally, Morgan Stanley boosted their price target on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $280.32 on Thursday. The company's 50 day moving average price is $272.40 and its two-hundred day moving average price is $241.28. The firm has a market capitalization of $111.08 billion, a P/E ratio of 25.62, a P/E/G ratio of 2.50 and a beta of 0.83. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $288.00. 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 (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the business earned $2.26 earnings per share. Automatic Data Processing's revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts forecast that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Insider Buying and Selling

In related news, VP Brian Michaud sold 120 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of Automatic Data Processing 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 completion of 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. Over the last three months, insiders have sold 33,773 shares of company stock worth $9,450,629. 0.15% of the stock is owned by corporate insiders.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management and business outsourcing solutions. The company helps organizations manage payroll, tax withholding and compliance, employee benefits, time and attendance, workforce management, talent acquisition, and human resources administration.

ADP offers cloud-based platforms and related services designed for businesses of different sizes, from small companies to large multinational employers. Its offerings include payroll and HR software, workforce analytics, talent management tools, retirement and insurance-related administration, and professional employer organization services through ADP TotalSource.

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