Charles Schwab Investment Management Inc. Has $717.57 Million Position in Automatic Data Processing, Inc. (NASDAQ:ADP)

Key Points

• Charles Schwab Investment Management Inc. increased its holdings in Automatic Data Processing (ADP) by 1.2% during the first quarter, acquiring an additional 26,752 shares, bringing its total ownership to approximately 2.35 million shares valued at $717.57 million.
• ADP reported a quarterly earnings per share (EPS) of $2.26, exceeding analysts' expectations, with revenue hitting $5.13 billion, marking a 6.3% year-over-year increase.
• The company recently announced a quarterly dividend of $1.54 per share, indicating an annualized dividend yield of 2.0%, with a payout ratio of approximately 61.72%.

Charles Schwab Investment Management Inc. raised its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,348,601 shares of the business services provider's stock after acquiring an additional 26,752 shares during the quarter. Charles Schwab Investment Management Inc. owned 0.58% of Automatic Data Processing worth $717,568,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. von Borstel & Associates Inc. bought a new stake in Automatic Data Processing in the first quarter valued at $30,000. Main Street Group LTD raised its stake in shares of Automatic Data Processing by 50.7% during the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after purchasing an additional 38 shares in the last quarter. Abound Wealth Management raised its stake in shares of Automatic Data Processing by 58.1% during 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 in the last quarter. Banque de Luxembourg S.A. acquired a new position in Automatic Data Processing during the fourth quarter worth about $37,000. Finally, Point72 Asia Singapore Pte. Ltd. acquired a new position in Automatic Data Processing during the fourth quarter worth about $37,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Down 0.3%

Shares of ADP stock traded down $0.89 on Tuesday, hitting $302.83. The company's stock had a trading volume of 314,662 shares, compared to its average volume of 1,741,013. The stock has a market capitalization of $122.66 billion, a price-to-earnings ratio of 30.38, a P/E/G ratio of 2.80 and a beta of 0.81. Automatic Data Processing, Inc. has a fifty-two week low of $259.08 and a fifty-two week high of $329.93. The firm's fifty day moving average price is $307.69 and its 200-day moving average price is $305.58. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating the consensus estimate of $2.23 by $0.03. The company had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%. The business's revenue was up 6.3% compared to the same quarter last year. During the same period last year, the company earned $2.09 earnings per share. Research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be given a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.0%. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a report on Thursday, July 10th. Morgan Stanley raised their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. UBS Group dropped their target price on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research report on Friday, June 13th. Mizuho upped their price target 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. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a report on Thursday, June 5th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and two have given a buy rating to the company. According to data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and an average price target of $314.33.

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.