Bank of New York Mellon Corp Acquires New Shares in Automatic Data Processing, Inc. $ADP

Key Points

• Bank of New York Mellon acquired 3.24 million ADP shares valued at approximately $725.5 million, giving it a 0.81% stake. Institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. The company issued fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70, equivalent to $6.80 annually and a 2.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Bank of New York Mellon Corp purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 3,239,620 shares of the business services provider's stock, valued at approximately $725,513,000. Bank of New York Mellon Corp owned about 0.81% of Automatic Data Processing at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Centric Wealth Management bought a new position in Automatic Data Processing during the second quarter worth about $2,658,000. Private Advisory Group LLC bought a new stake in shares of Automatic Data Processing in the second quarter worth about $279,000. Focus Partners Advisor Solutions LLC acquired a new stake in shares of Automatic Data Processing during the second quarter worth about $2,274,000. ABN AMRO Bank N.V. acquired a new stake in shares of Automatic Data Processing during the second quarter worth about $437,000. Finally, Summit Asset Management LLC bought a new position in shares of Automatic Data Processing during the 2nd quarter valued at about $255,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $279.21 on Friday. The stock's 50 day moving average price is $248.57 and its two-hundred day moving average price is $225.93. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $308.99. The firm has a market capitalization of $110.92 billion, a price-to-earnings ratio of 25.52 and a beta of 0.81. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion for the quarter, compared to analyst estimates 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 was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be 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 of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio is presently 62.16%.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the 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 completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on ADP shares. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a report on Thursday, July 30th. Wells Fargo & Company boosted their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Argus lowered their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a report on Tuesday, May 5th. Guggenheim lifted their price target on Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Finally, Jefferies Financial Group cut their price target on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing 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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