Automatic Data Processing, Inc. $ADP Stock Sold by Prime Capital Investment Advisors LLC

Key Points

• Prime Capital Investment Advisors reduced its ADP stake by 17.3% in the third quarter, selling 3,949 shares and retaining 18,830 shares valued at approximately $4.86 million. Institutional investors collectively own 80.03% of ADP.
• ADP shares opened at $292.75, near their 52-week high of $294.27. The company recently beat quarterly earnings expectations, reporting $2.64 in EPS and $5.47 billion in revenue, while revenue grew 6.8% year over year.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.3% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50, despite several firms raising their targets.

Prime Capital Investment Advisors LLC trimmed its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 17.3% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 18,830 shares of the business services provider's stock after selling 3,949 shares during the period. Prime Capital Investment Advisors LLC's holdings in Automatic Data Processing were worth $4,859,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also made changes to their positions in ADP. Thrive Wealth Management LLC grew its position in Automatic Data Processing by 3.5% during the second quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider's stock worth $243,000 after buying an additional 37 shares in the last quarter. Tanager Wealth Management LLP raised its holdings in Automatic Data Processing by 4.1% in the 3rd quarter. Tanager Wealth Management LLP now owns 971 shares of the business services provider's stock valued at $251,000 after acquiring an additional 38 shares in the last quarter. Aull & Monroe Investment Management Corp raised its holdings in Automatic Data Processing by 0.3% in the 3rd quarter. Aull & Monroe Investment Management Corp now owns 15,668 shares of the business services provider's stock valued at $4,043,000 after acquiring an additional 44 shares in the last quarter. Guardian Partners Inc. lifted its position in shares of Automatic Data Processing by 0.9% during the 1st quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider's stock valued at $1,044,000 after acquiring an additional 47 shares during the period. Finally, Bank & Trust Co lifted its position in shares of Automatic Data Processing by 1.3% during the 2nd quarter. Bank & Trust Co now owns 3,908 shares of the business services provider's stock valued at $875,000 after acquiring an additional 50 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Automatic Data Processing news, CEO Maria Black sold 29,810 shares of Automatic Data Processing 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 owned 80,624 shares in the company, valued at $22,648,087.84. The trade was a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 2,414 shares of the business's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president directly owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their position. The SEC filing for this sale provides additional information. 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 over the last 90 days. Corporate insiders own 0.15% of the company's stock.

Automatic Data Processing Stock Up 2.0%

Shares of ADP opened at $292.75 on Wednesday. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $294.27. The company has a market cap of $116.00 billion, a P/E ratio of 26.76, a P/E/G ratio of 2.60 and a beta of 0.83. 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 firm has a 50 day simple moving average of $273.69 and a two-hundred day simple moving average of $243.70.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to analysts' expectations of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The company's quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the company earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts forecast that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were issued a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.3%. Automatic Data Processing's payout ratio is 62.16%.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. TD Cowen increased their target price on Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a report on Monday, July 6th. Cantor Fitzgerald boosted their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Guggenheim upped their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, September 22nd. Finally, UBS Group raised their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Three analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $273.50.

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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