B. Metzler seel. Sohn & Co. AG Purchases New Position in Automatic Data Processing, Inc. $ADP

Key Points

• B. Metzler seel. Sohn & Co. AG acquired 55,122 ADP shares in the second quarter, valued at approximately $12.3 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year. The company issued fiscal 2027 EPS guidance of $12.12 to $12.34.
• ADP declared a quarterly dividend of $1.70 per share, or $6.80 annualized, representing a 2.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

B. Metzler seel. Sohn & Co. AG acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 55,122 shares of the business services provider's stock, valued at approximately $12,345,000.

A number of other hedge funds have also made changes to their positions in ADP. Imprint Wealth LLC acquired a new stake in Automatic Data Processing during the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Automatic Data Processing during the fourth quarter worth approximately $26,000. Bard Associates Inc. acquired a new position in Automatic Data Processing during the 4th quarter worth $28,000. Whipplewood Advisors LLC increased its stake in shares of Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after buying an additional 137 shares during the period. Finally, Prosperity Bancshares Inc bought a new position in Automatic Data Processing in the fourth quarter valued at about $33,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $279.21 on Friday. The stock has a 50 day moving average price of $248.57 and a 200 day moving average price of $225.93. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $308.99. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $110.92 billion, a PE ratio of 25.52 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results 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 for the quarter, compared to the consensus estimate of $5.44 billion. During the same period in the previous year, the company earned $2.26 earnings per share. The firm'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. Analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be paid a dividend of $1.70 per share. The ex-dividend date is Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. Automatic Data Processing's payout ratio is currently 62.16%.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of the firm's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the sale, the vice president directly owned 9,660 shares in the company, valued at approximately $2,565,889.20. This trade represents a 19.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on ADP shares. Guggenheim raised their price target on Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Stifel Nicolaus upped their price objective on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Jefferies Financial Group dropped their price target on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Finally, Cantor Fitzgerald increased their target price on Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a report on Monday, August 3rd. 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 stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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