Corient Private Wealth LP Sells 62,163 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Corient Private Wealth LP cut its ADP stake by 15.2%, selling 62,163 shares during the second quarter and retaining 346,598 shares valued at approximately $77.6 million. Institutional investors collectively own about 80% of ADP.
• Analysts maintain a largely cautious outlook, with three Buy, eight Hold, and one Sell rating. ADP’s consensus rating is Hold, with an average price target of $273.50.
• ADP exceeded quarterly expectations with $2.64 in EPS and $5.47 billion in revenue, while revenue grew 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, representing a 2.5% annualized yield.

Corient Private Wealth LP decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 15.2% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 346,598 shares of the business services provider's stock after selling 62,163 shares during the quarter. Corient Private Wealth LP owned approximately 0.09% of Automatic Data Processing worth $77,625,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Compass Capital Management Inc. lifted its stake in shares of Automatic Data Processing by 3.0% in the fourth quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock worth $52,400,000 after buying an additional 5,899 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth $13,283,000. Royal Capital Wealth Management LLC acquired a new position in Automatic Data Processing in the 2nd quarter valued at $1,226,000. Canada Pension Plan Investment Board acquired a new position in Automatic Data Processing in the 2nd quarter valued at $152,706,000. Finally, DNB Asset Management AS raised its holdings in Automatic Data Processing by 11.1% in 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. Institutional investors own 80.03% of the company's stock.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of research analyst reports. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Cantor Fitzgerald boosted their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Stifel Nicolaus increased their target price on Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Citigroup raised their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Finally, Weiss Ratings raised Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and a consensus target price of $273.50.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the firm's stock in a transaction that occurred on Thursday, July 30th. The stock was 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 approximately $2,565,889.20. This trade represents a 19.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction that occurred 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 sale, the chief executive officer directly owned 80,624 shares in the company, valued at $22,648,087.84. The trade was a 26.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 33,773 shares of company stock valued at $9,450,629. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $268.26 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. The company has a market cap of $106.57 billion, a PE ratio of 24.52, a price-to-earnings-growth ratio of 2.43 and a beta of 0.82. The firm has a fifty day moving average price of $265.91 and a two-hundred day moving average price of $232.12. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $296.86.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business's revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently declared 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. This represents a $6.80 annualized dividend and a yield of 2.5%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's payout ratio is currently 62.16%.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services.

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