Canandaigua National Bank & Trust Co. Invests $1.57 Million in Automatic Data Processing, Inc. $ADP

Key Points

• Canandaigua National Bank & Trust acquired 7,026 shares of Automatic Data Processing worth approximately $1.57 million. Institutional investors collectively own 80.03% of ADP’s outstanding stock.
• ADP exceeded quarterly expectations with adjusted EPS of $2.64 versus the $2.59 consensus and revenue of $5.47 billion, 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 per share, equivalent to an annualized $6.80 payout and a 2.5% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Canandaigua National Bank & Trust Co. acquired a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 7,026 shares of the business services provider's stock, valued at approximately $1,573,000.

Several other institutional investors also recently bought and sold shares of the company. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing in the 3rd quarter worth $25,000. Cornerstone Financial Management LLC purchased a new stake in Automatic Data Processing in the fourth quarter valued at about $26,000. Bard Associates Inc. acquired a new stake in Automatic Data Processing in the fourth quarter worth about $28,000. Whipplewood Advisors LLC boosted its holdings in Automatic Data Processing by 2,740.0% in the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after acquiring an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth about $33,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Down 0.2%

Shares of ADP stock opened at $270.09 on Thursday. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $310.08. The stock has a market cap of $107.96 billion, a P/E ratio of 24.69 and a beta of 0.81. The stock has a 50 day moving average of $238.87 and a 200 day moving average of $224.57. The company has a current ratio of 1.05, a quick ratio of 1.04 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping the consensus estimate 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 business had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the prior year, the firm posted $2.26 EPS. The business'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, sell-side analysts expect that Automatic Data Processing, Inc. will post 12.3 EPS for the current year.

Automatic Data Processing Announces Dividend

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

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the firm's stock in a transaction dated Thursday, July 30th. The stock was 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 $2,565,889.20. This trade represents a 19.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Morgan Stanley increased their price objective on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. TD Cowen upped their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research note on Monday, July 6th. BMO Capital Markets lifted their price objective on shares of 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. UBS Group boosted their price objective 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, Stifel Nicolaus upped their target price on Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of "Hold" and a consensus target price 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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