Concurrent Investment Advisors LLC Sells 4,710 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Concurrent Investment Advisors reduced its ADP stake by 10.8%, selling 4,710 shares and retaining 38,791 shares valued at approximately $8.7 million. Institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share 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 2.4% yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, below the reported share price of $277.62. ADP executives also sold shares under pre-arranged trading plans, including the CEO’s approximately $8.4 million sale.

Concurrent Investment Advisors LLC lowered its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 10.8% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 38,791 shares of the business services provider's stock after selling 4,710 shares during the quarter. Concurrent Investment Advisors LLC's holdings in Automatic Data Processing were worth $8,687,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Thrive Wealth Management LLC raised its holdings in shares of Automatic Data Processing by 3.5% during the 2nd quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider's stock valued at $243,000 after buying an additional 37 shares in the last quarter. SBI Securities Co. Ltd. boosted its stake in Automatic Data Processing by 2.4% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,895 shares of the business services provider's stock worth $488,000 after buying an additional 45 shares in the last quarter. Cary Street Partners Investment Advisory LLC boosted its stake in Automatic Data Processing by 1.7% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 2,784 shares of the business services provider's stock worth $716,000 after buying an additional 47 shares in the last quarter. Guardian Partners Inc. grew its position in Automatic Data Processing by 0.9% during the first quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider's stock valued at $1,044,000 after acquiring an additional 47 shares during the last quarter. Finally, Reston Wealth Management LLC grew its position in Automatic Data Processing by 5.8% during the fourth quarter. Reston Wealth Management LLC now owns 892 shares of the business services provider's stock valued at $229,000 after acquiring an additional 49 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Down 2.1%

Shares of NASDAQ ADP opened at $277.62 on Friday. 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 $302.68. The firm has a market capitalization of $110.29 billion, a PE ratio of 25.38, a price-to-earnings-growth ratio of 2.52 and a beta of 0.82. The firm has a fifty day simple moving average of $262.37 and a two-hundred day simple moving average of $230.21.

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 for the quarter, beating analysts' consensus estimates 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 firm had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the firm posted $2.26 EPS. The company'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. Equities analysts expect that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The company also recently announced 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. The ex-dividend date is Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.4%. Automatic Data Processing's dividend payout ratio is 62.16%.

Key Stories Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a yield of approximately 2.4%. The payment reinforces the company’s appeal to income-focused investors and its long record of annual dividend increases. Dividend announcement article
• Neutral Sentiment: ADP’s August employment report showed private-sector payrolls increased by 38,000, while base pay rose 3.2% and gross pay grew 4.7%. The data highlights ADP’s influence as a labor-market information provider, but also points to a moderating hiring environment. ADP August employment report
• Neutral Sentiment: One valuation analysis described ADP as roughly 1% undervalued based on recent labor-market data, while noting that the stock has underperformed the broader technology sector. The limited valuation discount suggests investors may need stronger earnings growth to drive further upside. ADP valuation analysis
• Negative Sentiment: A Seeking Alpha analysis downgraded ADP, arguing that recent operating and market tailwinds are already reflected in the share price. The view adds valuation pressure as ADP trades at a relatively elevated earnings multiple. ADP downgrade analysis
• Negative Sentiment: CEO Maria Black sold 29,810 shares worth about $8.4 million, reducing her direct ownership by roughly 27%. Vice President Joseph Desilva separately sold 631 shares for approximately $178,000. Both transactions were executed under pre-arranged Rule 10b5-1 plans, making them less significant as discretionary bearish signals, though the sales may still weigh on sentiment. ADP insider sales
• Negative Sentiment: August private payroll growth of 38,000 missed the 47,000 forecast and slowed from 44,000 in July. A weaker hiring backdrop could reduce growth in payroll-processing volumes, although lower employment growth may increase expectations for easier Federal Reserve policy. ADP private payrolls report

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Stifel Nicolaus boosted their price objective on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. UBS Group upped their price objective 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. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Citigroup lifted 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 report on Thursday, July 30th. Finally, Wells Fargo & Company boosted their price target on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $273.50.

Insider Transactions at Automatic Data Processing

In related news, VP Joseph Desilva sold 631 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the sale, the vice president directly owned 18,824 shares of the company's stock, valued at $5,324,744.88. This represents a 3.24% 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. Also, CEO Maria Black sold 29,810 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the transaction, the chief executive officer owned 80,624 shares of the company's stock, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,773 shares of company stock worth $9,450,629 over the last quarter. Insiders own 0.20% of the company's stock.

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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