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

Key Points

• Ninety One UK Ltd reduced its ADP position by 14.7%, selling 400,887 shares and retaining 2.33 million shares worth approximately $601.2 million. Institutional investors and hedge funds own about 80% of ADP.
• ADP reported quarterly earnings of $2.64 per share and revenue of $5.47 billion, exceeding analyst expectations, while revenue increased 6.8% year over year. The company also pays an annualized dividend of $6.80 per share, yielding about 2.4%.
• ADP shares traded near their 52-week high at $288.10, while analysts maintained a consensus “Hold” rating with an average price target of $273.50.

Ninety One UK Ltd lowered its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 14.7% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,329,634 shares of the business services provider's stock after selling 400,887 shares during the quarter. Automatic Data Processing makes up approximately 1.4% of Ninety One UK Ltd's holdings, making the stock its 18th biggest position. Ninety One UK Ltd owned about 0.59% of Automatic Data Processing worth $601,185,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of ADP. BlackRock Inc. bought a new stake in Automatic Data Processing in the second quarter worth approximately $8,097,229,000. Bank of America Corp DE acquired a new position in shares of Automatic Data Processing during the 2nd quarter worth $1,231,175,000. Deutsche Bank AG bought a new position in shares of Automatic Data Processing during the 2nd quarter valued at $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of 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 valued at $952,112,000 after purchasing an additional 129,376 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Automatic Data Processing during the 2nd quarter valued at $725,513,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP traded up $7.78 during trading on Thursday, reaching $288.10. The stock had a trading volume of 727,370 shares, compared to its average volume of 2,861,694. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $289.80. The firm has a market capitalization of $114.16 billion, a price-to-earnings ratio of 26.33, a P/E/G ratio of 2.50 and a beta of 0.83. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock has a fifty day simple moving average of $272.40 and a two-hundred day simple moving average of $241.28.

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, 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 business had revenue of $5.47 billion during the quarter, compared to analysts' expectations of $5.44 billion. During the same period in the previous year, the company earned $2.26 earnings per share. Automatic Data Processing's revenue for the quarter was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, analysts anticipate that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently declared 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 2.4%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's dividend payout ratio is 62.16%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on ADP. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. 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 report on Thursday, July 30th. Guggenheim raised their target price on Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a report on Thursday, July 30th. 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. Finally, TD Cowen boosted their price target 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 investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $273.50.

Insider Activity

In other news, 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 value of $178,490.97. Following the transaction, the vice president directly owned 18,824 shares in the company, valued at approximately $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the transaction, the chief executive officer directly owned 80,624 shares of the company's stock, valued at $22,648,087.84. This represents a 26.99% 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. Insiders have sold 33,773 shares of company stock valued at $9,450,629 over the last three months. 0.15% of the stock is currently owned by insiders.

Automatic Data Processing Profile

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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