Citizens Financial Group Inc. RI Invests $5.51 Million in Automatic Data Processing, Inc. $ADP

Key Points

• Citizens Financial Group initiated a $5.51 million position in Automatic Data Processing during the second quarter by purchasing 24,539 shares. Other institutional investors also added stakes, with institutions collectively owning 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, up 6.8% year over year. The company has issued fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to a $6.80 annualized payout and a 2.6% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Citizens Financial Group Inc. RI bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 24,539 shares of the business services provider's stock, valued at approximately $5,511,000.

Other institutional investors and hedge funds also recently modified their holdings of the company. Texas Capital Bank Wealth Management Services Inc bought a new stake in Automatic Data Processing during the second quarter worth $215,000. Pavion Blue Capital LLC bought a new position in Automatic Data Processing in the 2nd quarter valued at $1,011,000. Grandfield & Dodd LLC bought a new position in Automatic Data Processing in the 2nd quarter valued at $1,277,000. Argyle Capital Partners LLC purchased a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $316,000. Finally, MidFirst Bank bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth $4,129,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

ADP stock opened at $266.06 on Tuesday. The firm has a 50 day moving average of $245.82 and a 200-day moving average of $225.35. 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. The firm has a market capitalization of $105.69 billion, a P/E ratio of 24.32 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. During the same period in the prior year, the company posted $2.26 EPS. The business's revenue for the quarter 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 predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be paid a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.6%. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Analyst Upgrades and Downgrades

ADP has been the subject of several research reports. Argus reduced their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Mizuho decreased their target price on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Cantor Fitzgerald upped their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Morgan Stanley increased their price target on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Finally, Citigroup lifted their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $273.50.

Insider Buying and Selling

In related news, VP David Kwon sold 2,414 shares of the business'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 completion of the transaction, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. The trade was a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by insiders.

About Automatic Data Processing

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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