Baird Financial Group Inc. Has $103.62 Million Position in Automatic Data Processing, Inc. $ADP

Key Points

• Baird Financial Group reduced its Automatic Data Processing position by 2.2% in the second quarter, but still held 462,686 shares valued at approximately $103.6 million. Institutional investors collectively own 80.03% of ADP.
• ADP reported quarterly EPS of $2.64, beating estimates of $2.59, while revenue rose 6.8% year over year to $5.47 billion. The company also declared a quarterly dividend of $1.70 per share, representing a 2.5% annualized yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, while ADP shares recently traded at $267.96. Company insiders sold $9.45 million worth of stock during the last quarter under pre-arranged trading plans.

Baird Financial Group Inc. reduced its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.2% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 462,686 shares of the business services provider's stock after selling 10,473 shares during the period. Baird Financial Group Inc. owned about 0.12% of Automatic Data Processing worth $103,619,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Automatic Data Processing during the 4th quarter worth approximately $26,000. Bard Associates Inc. bought a new stake in Automatic Data Processing in the 4th quarter valued at $28,000. Prosperity Bancshares Inc acquired a new stake in Automatic Data Processing during the 4th quarter valued at $33,000. Finally, Wilkerson Advisory Group LLC acquired a new stake in Automatic Data Processing during the 4th quarter valued at $36,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Trading Down 3.5%

ADP stock opened at $267.96 on Wednesday. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $299.22. The company has a market capitalization of $106.45 billion, a PE ratio of 24.49, a price-to-earnings-growth ratio of 2.52 and a beta of 0.82. The company's 50-day simple moving average is $264.30 and its 200 day simple moving average is $231.15. 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 posted 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. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter in the previous year, the firm posted $2.26 EPS. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Insider Buying and Selling

In related news, VP Brian L. Michaud sold 120 shares of the firm's stock in a transaction on 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 in the company, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. The sale 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 business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president directly owned 18,824 shares of the company's stock, valued at approximately $5,324,744.88. This trade represents a 3.24% 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 have sold 33,773 shares of company stock worth $9,450,629 in the last quarter. Insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on ADP shares. BMO Capital Markets upped their price objective on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Guggenheim lifted their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Wells Fargo & Company upped their price target 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. UBS Group increased their price target 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. Finally, TD Cowen raised their price objective on shares of 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 given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing Profile

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services.

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