Baxter Bros Inc. Takes Position in Automatic Data Processing, Inc. $ADP

Key Points

• Baxter Bros Inc. acquired 73,438 ADP shares worth approximately $16.4 million, making ADP its 14th-largest holding and representing 1.9% of its portfolio. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. Analysts expect $12.26 in EPS for the current fiscal year.
• ADP declared a quarterly dividend of $1.70 per share, or $6.80 annualized, yielding about 2.5%. Despite mixed analyst actions, the stock has a consensus “Hold” rating and an average price target of $273.50.

Baxter Bros Inc. acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 73,438 shares of the business services provider's stock, valued at approximately $16,446,000. Automatic Data Processing comprises about 1.9% of Baxter Bros Inc.'s holdings, making the stock its 14th largest holding.

Several other hedge funds and other institutional investors have also bought and sold shares of ADP. Horizon Investments LLC lifted its holdings in Automatic Data Processing by 34.1% during the fourth quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider's stock valued at $6,725,000 after purchasing an additional 6,655 shares in the last quarter. Compass Capital Management Inc. raised its position in shares of Automatic Data Processing by 3.0% during the 4th quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock valued at $52,400,000 after purchasing an additional 5,899 shares during the period. DNB Asset Management AS raised its position in shares of Automatic Data Processing by 11.1% during the 4th quarter. DNB Asset Management AS now owns 152,697 shares of the business services provider's stock valued at $39,278,000 after purchasing an additional 15,287 shares during the period. Leonteq Securities AG purchased a new position in shares of Automatic Data Processing during the 4th quarter valued at $3,054,000. Finally, Jefferies Financial Group Inc. boosted its holdings in Automatic Data Processing by 439.2% in the 4th quarter. Jefferies Financial Group Inc. now owns 51,341 shares of the business services provider's stock worth $13,206,000 after buying an additional 41,820 shares during the period. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $272.96 on Monday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $310.08. The stock's 50 day simple moving average is $245.08 and its two-hundred day simple moving average is $225.27. The company has a market cap of $108.44 billion, a price-to-earnings ratio of 24.95 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. During the same period in the prior year, the company earned $2.26 EPS. The company's quarterly revenue 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, equities analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm 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 $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is presently 62.16%.

Insider Buying and Selling at Automatic Data Processing

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

Analysts Set New Price Targets

ADP has been the topic of a number of recent analyst reports. Argus decreased their price target on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a report on Tuesday, May 5th. Wells Fargo & Company boosted their price target on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. BMO Capital Markets upped their price target on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Finally, Guggenheim lifted their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and an average target price 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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