Automatic Data Processing, Inc. $ADP Stock Sold by Ninety One SA Pty Ltd

Key Points

• Ninety One SA Pty Ltd cut its ADP position by 87.7% in the third quarter, selling 8,206 shares and retaining 1,150 shares valued at approximately $297,000. Institutional investors and hedge funds collectively own 80.03% of ADP.
• ADP insiders sold 33,773 shares worth about $9.45 million over the past 90 days, including a $8.37 million sale by CEO Maria Black, conducted under pre-arranged Rule 10b5-1 trading plans.
• ADP shares recently traded at $288.13, near their 52-week high, after the company beat quarterly earnings and revenue expectations. Analysts maintain a consensus “Hold” rating with an average price target of $273.50, while ADP pays a $1.70 quarterly dividend.

Ninety One SA Pty Ltd lowered its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 87.7% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,150 shares of the business services provider's stock after selling 8,206 shares during the period. Ninety One SA Pty Ltd's holdings in Automatic Data Processing were worth $297,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also modified their holdings of ADP. BlackRock Inc. bought a new position in 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 second quarter valued at about $1,231,175,000. Deutsche Bank AG acquired a new position in Automatic Data Processing during the 2nd quarter worth about $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Automatic Data Processing by 3.1% during the 2nd 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 acquiring an additional 129,376 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Automatic Data Processing in the 2nd quarter valued at about $725,513,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Automatic Data Processing news, VP Brian Michaud sold 120 shares of the 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 transaction, the vice president owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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 dated 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 completion of the sale, the chief executive officer directly owned 80,624 shares of the company's stock, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 33,773 shares of company stock worth $9,450,629. Company insiders own 0.15% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ADP. Wells Fargo & Company boosted 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. Guggenheim increased their price target on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Citigroup increased their price objective 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. Weiss Ratings raised Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. Finally, TD Cowen boosted their target price on Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research report on Monday, July 6th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. 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 Trading Up 2.8%

Shares of NASDAQ ADP traded up $7.81 during mid-day trading on Thursday, hitting $288.13. The company's stock had a trading volume of 727,370 shares, compared to its average volume of 2,861,694. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $289.80. The company's fifty day simple moving average is $272.40 and its 200-day simple moving average is $241.28. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market cap of $114.17 billion, a price-to-earnings ratio of 26.33, a price-to-earnings-growth ratio of 2.50 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced 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 firm 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%. The business's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period 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, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business 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 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's dividend 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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