Centric Wealth Management Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Centric Wealth Management purchased 12,577 ADP shares worth approximately $2.66 million during the second quarter. Institutional investors and hedge funds collectively own 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, representing a 2.5% annualized yield.
• Analysts raised several price targets, but the consensus remains a “Hold” rating with an average target of $273.50. ADP shares opened at $272.96, while an insider sold 2,414 shares under a pre-arranged trading plan.

Centric Wealth Management purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 12,577 shares of the business services provider's stock, valued at approximately $2,658,000.

A number of other hedge funds have also modified their holdings of the company. State Street Corp increased its holdings in Automatic Data Processing by 0.7% in the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock worth $4,903,769,000 after buying an additional 133,039 shares during the period. Geode Capital Management LLC lifted its stake in Automatic Data Processing by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock valued at $2,977,777,000 after acquiring an additional 136,876 shares during the period. Capital Research Global Investors boosted its holdings in shares of Automatic Data Processing by 4.6% in the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock valued at $2,159,088,000 after acquiring an additional 372,413 shares during the last quarter. Wellington Management Group LLP boosted its holdings in shares of Automatic Data Processing by 8.0% in the 4th quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider's stock valued at $1,896,944,000 after acquiring an additional 544,210 shares during the last quarter. Finally, Cardano Risk Management B.V. increased its stake in shares of Automatic Data Processing by 950.1% in the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock worth $916,557,000 after acquiring an additional 3,223,855 shares during the period. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the sale, the vice president owned 9,660 shares in the company, valued at $2,565,889.20. This trade represents a 19.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on ADP. Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Citigroup boosted their price target on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Guggenheim lifted their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a report on Thursday, July 30th. UBS Group boosted their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Finally, Robert W. Baird lowered their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $272.96 on Friday. The company has a market capitalization of $108.44 billion, a P/E ratio of 24.95 and a beta of 0.81. The business's 50 day moving average is $245.08 and its two-hundred day moving average is $225.50. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $310.08.

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, 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 for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter last year, the firm posted $2.26 EPS. The business's revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business 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 dividend of $1.70 per share. This represents a $6.80 annualized dividend and a 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%.

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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