Cwm LLC Sells 2,546 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Cwm LLC reduced its stake in Automatic Data Processing, Inc. by 8.3%, selling 2,546 shares during the second quarter, and retaining 28,187 shares valued at $8.69 million.
• Recent analyst reports indicate a mixed outlook for ADP, with three analysts rating it as a "Buy" and nine as "Hold," with an average price target around $316.70.
• ADP declared a quarterly dividend of $1.54 per share, resulting in an annualized yield of 2.2%, with a reported dividend payout ratio of 61.72%.

Cwm LLC reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 8.3% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 28,187 shares of the business services provider's stock after selling 2,546 shares during the quarter. Cwm LLC's holdings in Automatic Data Processing were worth $8,693,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Activest Wealth Management lifted its stake in shares of 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 worth $25,000 after acquiring an additional 78 shares during the period. Clarity Asset Management Inc. acquired a new position in shares of Automatic Data Processing in the first quarter worth approximately $29,000. von Borstel & Associates Inc. acquired a new position in Automatic Data Processing in the first quarter valued at approximately $30,000. Y.D. More Investments Ltd acquired 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 buying an additional 43 shares during the period. 80.03% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ADP has been the topic of several recent analyst reports. Stifel Nicolaus boosted their price target 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. Weiss Ratings reissued a "buy (b)" rating on shares of Automatic Data Processing in a research note on Wednesday, October 8th. Morgan Stanley boosted their price target on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Dbs Bank raised Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Finally, BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research report on Thursday, July 10th. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average price target of $316.70.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $285.92 on Wednesday. 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, Inc. has a twelve month low of $272.62 and a twelve month high of $329.93. The stock's 50 day moving average is $296.63 and its 200-day moving average is $302.82. The firm has a market capitalization of $115.82 billion, a price-to-earnings ratio of 28.65, a PEG ratio of 2.60 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued 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 company had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same period in the prior year, the firm earned $2.09 earnings per share. Automatic Data Processing's revenue for the quarter was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Friday, September 12th were given a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, September 12th. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Don Mcguire sold 13,599 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 value of $4,033,055.43. Following the completion of the transaction, the vice president owned 17,684 shares in the company, valued at $5,244,543.88. This represents a 43.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 shares were sold at an average price of $296.57, for a total value 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 position. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock worth $15,632,410 in the last three months. 0.20% of the stock is owned by corporate insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.