Bridges Investment Management Inc. Has $30.12 Million Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Bridges Investment Management Inc. reduced its stake in Automatic Data Processing, Inc. (ADP) by 2.1%, holding 97,652 shares valued at approximately $30.12 million after selling 2,124 shares in the second quarter.
• Analysts have mixed opinions on ADP, with three rating it as a Buy and nine as a Hold, while the average price target is around $316.70.
• The company recently announced a quarterly dividend of $1.54 per share, resulting in an annualized rate of $6.16 and a yield of 2.2%.

Bridges Investment Management Inc. decreased its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.1% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 97,652 shares of the business services provider's stock after selling 2,124 shares during the quarter. Bridges Investment Management Inc.'s holdings in Automatic Data Processing were worth $30,116,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in ADP. Brighton Jones LLC lifted its stake in Automatic Data Processing by 92.1% in the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after buying an additional 4,808 shares during the period. Bison Wealth LLC lifted its stake in Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after buying an additional 681 shares during the period. GAMMA Investing LLC lifted its stake in Automatic Data Processing by 13.8% in the first quarter. GAMMA Investing LLC now owns 9,495 shares of the business services provider's stock valued at $2,901,000 after buying an additional 1,148 shares during the period. Wealth Enhancement Advisory Services LLC raised its position in shares of Automatic Data Processing by 8.9% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 250,836 shares of the business services provider's stock worth $76,638,000 after purchasing an additional 20,467 shares during the period. Finally, Exchange Traded Concepts LLC raised its position in shares of Automatic Data Processing by 33.5% during the first quarter. Exchange Traded Concepts LLC now owns 6,407 shares of the business services provider's stock worth $1,958,000 after purchasing an additional 1,606 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on ADP shares. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research report on Thursday, July 10th. Stifel Nicolaus increased their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Weiss Ratings reiterated a "buy (b)" rating on shares of Automatic Data Processing in a report on Wednesday, October 8th. Morgan Stanley increased their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Finally, UBS Group decreased their price objective on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a report on Wednesday, September 17th. Three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $316.70.

Automatic Data Processing Stock Down 0.6%

ADP stock opened at $284.21 on Thursday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a twelve month low of $272.62 and a twelve month high of $329.93. The business has a 50 day moving average price of $296.28 and a two-hundred day moving average price of $302.69. The company has a market cap of $115.13 billion, a price-to-earnings ratio of 28.48, a P/E/G ratio of 2.62 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The company had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. During the same period in the previous year, the company posted $2.09 EPS. The firm's revenue for the quarter was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were paid a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Friday, September 12th. Automatic Data Processing's payout ratio is currently 61.72%.

Insider Activity at Automatic Data Processing

In other news, VP Don Mcguire sold 13,599 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following the completion of the transaction, the vice president directly owned 17,684 shares in the company, valued at approximately $5,244,543.88. The trade was a 43.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP David Foskett sold 1,373 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $407,190.61. Following the transaction, the vice president owned 11,781 shares of the company's stock, valued at $3,493,891.17. This represents a 10.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock worth $15,632,410 in the last three months. 0.20% of the stock is owned by company insiders.

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.

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