Automatic Data Processing, Inc. $ADP Stock Sold by JGP Wealth Management LLC

Key Points

• JGP Wealth Management cut its ADP position by 41.4% in the third quarter, selling 27,466 shares and retaining 38,952 shares valued at approximately $10.1 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• Analyst sentiment remains cautious, with three Buy, eight Hold, and one Sell rating; the consensus rating is Hold with a $273.50 price target. ADP shares recently traded at $273.81, near the consensus target.
• ADP exceeded quarterly expectations with earnings of $2.64 per share and revenue of $5.47 billion, while revenue grew 6.8% year over year. The company also announced a quarterly dividend of $1.70 per share, equivalent to a 2.5% annualized yield.

JGP Wealth Management LLC decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 41.4% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 38,952 shares of the business services provider's stock after selling 27,466 shares during the quarter. Automatic Data Processing accounts for approximately 0.9% of JGP Wealth Management LLC's holdings, making the stock its 25th biggest position. JGP Wealth Management LLC's holdings in Automatic Data Processing were worth $10,052,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Baron Financial Group LLC purchased a new stake in shares of Automatic Data Processing in the third quarter worth approximately $217,000. Marquette Asset Management LLC boosted its holdings in shares of Automatic Data Processing by 766.7% during the third quarter. Marquette Asset Management LLC now owns 234 shares of the business services provider's stock worth $60,000 after purchasing an additional 207 shares during the period. Valley Wealth Managers Inc. grew its position in Automatic Data Processing by 1.1% during the third quarter. Valley Wealth Managers Inc. now owns 24,761 shares of the business services provider's stock valued at $6,390,000 after purchasing an additional 275 shares in the last quarter. Argus Investors Counsel Inc. purchased a new position in Automatic Data Processing during the third quarter valued at approximately $218,000. Finally, Sound Income Strategies LLC grew its position in Automatic Data Processing by 10.2% during the third quarter. Sound Income Strategies LLC now owns 1,855 shares of the business services provider's stock valued at $502,000 after purchasing an additional 171 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Automatic Data Processing

In related news, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the sale, the vice president owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 on 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 owned 18,824 shares of the company's stock, valued at $5,324,744.88. This represents a 3.24% 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. In the last 90 days, insiders have sold 33,773 shares of company stock worth $9,450,629. Company insiders own 0.15% of the company's stock.

Analyst Ratings Changes

Several research firms have weighed in on ADP. Cantor Fitzgerald upped their price objective on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Wells Fargo & Company lifted their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Citigroup boosted their price target on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. BMO Capital Markets upped their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Finally, Stifel Nicolaus increased their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing currently has an average rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing Trading Up 1.1%

Shares of NASDAQ ADP opened at $273.81 on Tuesday. The business has a 50 day simple moving average of $272.09 and a 200 day simple moving average of $240.23. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $288.00. The stock has a market cap of $108.50 billion, a price-to-earnings ratio of 25.03, a PEG ratio of 2.45 and a beta of 0.83. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. The firm 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 company's revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter last year, the firm earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, 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 firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Friday, September 11th were given a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing's payout ratio is currently 62.16%.

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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