Corundum Group Inc. Increases Position in Automatic Data Processing, Inc. $ADP

Key Points

• Corundum Group Inc. increased its stake in Automatic Data Processing, Inc. by 70.9% during the second quarter, holding 3,348 shares valued at approximately $1,033,000.
• Automatic Data Processing reported a quarterly earnings per share (EPS) of $2.26, exceeding analyst expectations of $2.23, and a revenue of $5.13 billion, up 6.3% year-over-year.
• The company's quarterly dividend of $1.54 was announced recently, representing an annual yield of 2.1% with a payout ratio of 61.72%.

Corundum Group Inc. lifted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 70.9% during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,348 shares of the business services provider's stock after buying an additional 1,389 shares during the period. Corundum Group Inc.'s holdings in Automatic Data Processing were worth $1,033,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Activest Wealth Management lifted its stake in Automatic Data Processing by 2,600.0% in the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after purchasing an additional 78 shares during the last quarter. Clarity Asset Management Inc. purchased a new position in Automatic Data Processing in the first quarter valued at approximately $29,000. von Borstel & Associates Inc. purchased a new position in Automatic Data Processing in the first quarter valued at approximately $30,000. Y.D. More Investments Ltd purchased a new position in Automatic Data Processing in the first quarter valued at approximately $35,000. Finally, Abound Wealth Management lifted its stake in Automatic Data Processing by 58.1% in the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after purchasing an additional 43 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Trading Up 0.5%

Automatic Data Processing stock opened at $291.31 on Friday. The stock has a market cap of $118.01 billion, a P/E ratio of 29.19, a PEG ratio of 2.65 and a beta of 0.82. Automatic Data Processing, Inc. has a fifty-two week low of $272.62 and a fifty-two week high of $329.93. The firm's fifty day moving average price is $299.08 and its 200-day moving average price is $303.37. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.05 billion. During the same period in the previous year, the business earned $2.09 earnings per share. The firm's quarterly revenue was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Friday, September 12th were given a $1.54 dividend. The ex-dividend date was Friday, September 12th. This represents a $6.16 annualized dividend and a yield of 2.1%. Automatic Data Processing's payout ratio is 61.72%.

Insider Buying and Selling

In related news, VP David Foskett sold 1,373 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the completion of the transaction, the vice president directly owned 11,781 shares in the company, valued at approximately $3,493,891.17. The trade was a 10.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the completion of the transaction, the vice president owned 17,536 shares of the company's stock, valued at $5,200,651.52. This trade represents a 20.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,516 shares of company stock valued at $15,632,410 in the last three months. 0.20% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on ADP. Stifel Nicolaus upped their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday, July 31st. Mizuho boosted their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. Weiss Ratings reissued a "buy (b)" rating on shares of Automatic Data Processing in a report on Saturday, September 27th. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Finally, BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a report on Thursday, July 10th. Three investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $316.70.

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.

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