Cox Capital Mgt LLC Sells 9,661 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Cox Capital Mgt LLC significantly reduced its stake in Automatic Data Processing, selling 9,661 shares and decreasing its holdings by 92.7% in the 2nd quarter, leaving them with only 762 shares valued at approximately $235,000.
• Automatic Data Processing reported earnings of $2.26 per share, exceeding analysts' expectations, and achieved revenues of $5.13 billion for the quarter, a 6.3% increase year-over-year.
• The company announced a quarterly dividend of $1.54 per share, translating to an annualized yield of 2.1%, with a payout ratio of 61.72%.

Cox Capital Mgt LLC reduced its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 92.7% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 762 shares of the business services provider's stock after selling 9,661 shares during the period. Cox Capital Mgt LLC's holdings in Automatic Data Processing were worth $235,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Automatic Data Processing by 0.5% during the first quarter. Vanguard Group Inc. now owns 40,949,884 shares of the business services provider's stock valued at $12,511,418,000 after buying an additional 218,614 shares in the last quarter. Ameriprise Financial Inc. increased its stake in shares of Automatic Data Processing by 15.7% in the first quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock worth $1,348,805,000 after purchasing an additional 601,400 shares during the period. Invesco Ltd. increased its stake in shares of Automatic Data Processing by 3.7% in the first quarter. Invesco Ltd. now owns 4,031,713 shares of the business services provider's stock worth $1,231,809,000 after purchasing an additional 145,161 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Automatic Data Processing by 2.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,848,307 shares of the business services provider's stock worth $1,175,773,000 after purchasing an additional 77,296 shares during the period. Finally, Goldman Sachs Group Inc. increased its stake in shares of Automatic Data Processing by 22.6% in the first quarter. Goldman Sachs Group Inc. now owns 3,059,100 shares of the business services provider's stock worth $934,647,000 after purchasing an additional 564,187 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Down 0.9%

ADP stock opened at $288.89 on Friday. Automatic Data Processing, Inc. has a twelve month low of $272.18 and a twelve month high of $329.93. The company has a market cap of $117.01 billion, a PE ratio of 28.95, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82. The business's 50-day simple moving average is $300.57 and its 200 day simple moving average is $303.44. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The business had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. During the same period last year, the business earned $2.09 earnings per share. The firm's revenue for the quarter 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. On average, research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be issued a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Friday, September 12th. Automatic Data Processing's payout ratio is presently 61.72%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. UBS Group dropped their price objective on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 17th. Mizuho lifted their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. Stifel Nicolaus lifted their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research note on Thursday, July 10th. Finally, Morgan Stanley lifted their price objective on 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 analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of "Hold" and a consensus target price of $316.70.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Don Mcguire sold 13,599 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following the sale, the vice president directly owned 17,684 shares of the company's stock, valued at approximately $5,244,543.88. The trade was a 43.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Michael A. Bonarti sold 8,728 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the sale, the vice president directly owned 80,531 shares in the company, valued at $24,032,866.33. The trade was a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 52,516 shares of company stock valued at $15,632,410. Corporate insiders own 0.21% of the company's stock.

About Automatic Data Processing

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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