Clearstead Trust LLC Takes Position in Automatic Data Processing, Inc. $ADP

Key Points

• Clearstead Trust LLC acquired 14,838 shares of Automatic Data Processing valued at approximately $3.3 million, while institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $5.47 billion in revenue; revenue increased 6.8% year over year.
• 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.

Clearstead Trust LLC bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 14,838 shares of the business services provider's stock, valued at approximately $3,323,000.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Horizon Investments LLC grew its holdings in shares of Automatic Data Processing by 34.1% during the fourth quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider's stock worth $6,725,000 after buying an additional 6,655 shares during the last quarter. Compass Capital Management Inc. raised its stake in Automatic Data Processing by 3.0% during the 4th quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock valued at $52,400,000 after acquiring an additional 5,899 shares during the last quarter. DNB Asset Management AS lifted its position in Automatic Data Processing by 11.1% during the 4th quarter. DNB Asset Management AS now owns 152,697 shares of the business services provider's stock worth $39,278,000 after acquiring an additional 15,287 shares during the period. Leonteq Securities AG purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at approximately $3,054,000. Finally, Jefferies Financial Group Inc. grew its stake in shares of Automatic Data Processing by 439.2% in the 4th quarter. Jefferies Financial Group Inc. now owns 51,341 shares of the business services provider's stock valued at $13,206,000 after purchasing an additional 41,820 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Down 1.2%

ADP opened at $272.96 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.08. The stock has a market capitalization of $108.44 billion, a P/E ratio of 24.95 and a beta of 0.81. The business has a 50 day simple moving average of $245.08 and a 200-day simple moving average of $225.50.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping 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 in the prior year, the company posted $2.26 earnings per share. Automatic Data Processing's quarterly 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. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Jefferies Financial Group cut their price target on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Mizuho dropped their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 21st. Argus cut their price objective 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. Finally, Citigroup raised their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $273.50.

Insider Activity

In related news, VP David Kwon sold 2,414 shares of the firm's 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 completion of 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 at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by corporate insiders.

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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