Automatic Data Processing, Inc. $ADP Shares Bought by Bontempo Ohly Capital Mgmt LLC

Key Points

• Bontempo Ohly Capital Mgmt LLC significantly increased its stake in Automatic Data Processing, Inc. by 1,268.2%, owning 15,775 shares valued at about $4.82 million as of the latest reporting period.
• Other institutional investors also made substantial changes, with GAMMA Investing LLC raising its stake by an impressive 34,655.1%, acquiring nearly 2.9 million shares worth approximately $886.35 million.
• Automatic Data Processing recently announced a quarterly dividend of $1.54 per share, representing a 2.1% dividend yield, with a payout ratio of 61.72%.

Bontempo Ohly Capital Mgmt LLC raised its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1,268.2% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 15,775 shares of the business services provider's stock after acquiring an additional 14,622 shares during the quarter. Automatic Data Processing makes up about 2.3% of Bontempo Ohly Capital Mgmt LLC's investment portfolio, making the stock its 6th largest holding. Bontempo Ohly Capital Mgmt LLC's holdings in Automatic Data Processing were worth $4,820,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Activest Wealth Management lifted its stake in Automatic Data Processing by 2,600.0% in the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after acquiring an additional 78 shares during the last quarter. Clarity Asset Management Inc. acquired a new stake in Automatic Data Processing in the first quarter valued at $29,000. von Borstel & Associates Inc. acquired a new stake in Automatic Data Processing in the first quarter valued at $30,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing in the first quarter valued at $35,000. Finally, Abound Wealth Management raised its position in shares of Automatic Data Processing by 58.1% in the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after purchasing an additional 43 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

ADP stock traded up $0.16 during trading on Wednesday, reaching $288.85. 536,368 shares of the company were exchanged, compared to its average volume of 1,713,140. The company has a market capitalization of $117.00 billion, a price-to-earnings ratio of 28.97, a P/E/G ratio of 2.66 and a beta of 0.82. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The company has a 50-day moving average of $302.28 and a two-hundred day moving average of $304.30. Automatic Data Processing, Inc. has a twelve month low of $272.18 and a twelve month high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The company had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.Automatic Data Processing's revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the company earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be paid a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. Automatic Data Processing's dividend payout ratio is currently 61.72%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $1,368,373.98. Following the completion of the transaction, the vice president directly owned 17,536 shares in the company, valued at approximately $5,200,651.52. This represents a 20.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Michael A. Bonarti sold 8,728 shares of the company's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the completion of the transaction, the vice president owned 80,531 shares of the company's stock, valued at approximately $24,032,866.33. This trade represents a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 52,516 shares of company stock worth $15,632,410 over the last quarter. 0.21% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. UBS Group dropped their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday. Mizuho increased their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a research report on Thursday, June 5th. Dbs Bank raised Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Finally, Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. Two investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $314.73.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.