Colonial Trust Advisors Acquires 1,600 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Colonial Trust Advisors increased its stake in Automatic Data Processing, Inc. (ADP) by 95.2%, acquiring an additional 1,600 shares, bringing its total to 3,280 shares valued at approximately $1,002,000.
• Automatic Data Processing reported a quarterly earnings per share (EPS) of $2.26, surpassing analysts' expectations, with quarterly revenue of $5.13 billion, up 6.3% year-over-year.
• The company declared a quarterly dividend of $1.54 per share, with an annualized yield of 2.0%, set to be paid on October 1st.

Colonial Trust Advisors raised its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 95.2% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,280 shares of the business services provider's stock after acquiring an additional 1,600 shares during the quarter. Colonial Trust Advisors' holdings in Automatic Data Processing were worth $1,002,000 at the end of the most recent reporting period.

A number of other large investors have also recently added to or reduced their stakes in ADP. GAMMA Investing LLC lifted its stake in shares of Automatic Data Processing by 34,655.1% during the 1st quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock worth $886,345,000 after buying an additional 2,892,660 shares during the last quarter. Nuveen LLC acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth about $661,771,000. Northern Trust Corp lifted its stake in shares of Automatic Data Processing by 17.1% during the 4th quarter. Northern Trust Corp now owns 6,174,419 shares of the business services provider's stock worth $1,807,438,000 after buying an additional 902,354 shares during the last quarter. Mackenzie Financial Corp lifted its stake in shares of Automatic Data Processing by 128.1% during the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock worth $484,480,000 after buying an additional 890,440 shares during the last quarter. Finally, SG Americas Securities LLC lifted its stake in shares of Automatic Data Processing by 811.7% during the 1st quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock worth $194,806,000 after buying an additional 567,664 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock traded up $3.01 during midday trading on Friday, hitting $307.95. 1,150,918 shares of the company traded hands, compared to its average volume of 1,571,763. The stock has a market cap of $124.73 billion, a price-to-earnings ratio of 30.86, a PEG ratio of 2.82 and a beta of 0.81. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The firm's fifty day moving average price is $305.10 and its 200-day moving average price is $305.63. Automatic Data Processing, Inc. has a 12 month low of $267.79 and a 12 month high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) 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 net margin of 19.84% and a return on equity of 72.84%. The firm's revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the firm posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be issued a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.0%. Automatic Data Processing's payout ratio is 61.72%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Mizuho lifted their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. UBS Group dropped their price objective on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research note on Friday, June 13th. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research note on Thursday. Stifel Nicolaus lifted their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. Finally, Morgan Stanley lifted their price objective on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Two investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $317.00.

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.