eCIO Inc. Takes $276,000 Position in Automatic Data Processing, Inc. $ADP

Key Points

• eCIO Inc. invested approximately $276,000 in Automatic Data Processing, Inc. (NASDAQ: ADP) by acquiring 904 shares during the first quarter.
• Automatic Data Processing reported a 6.3% increase in revenue year-over-year for the quarter, with earnings per share of $2.26, exceeding estimates.
• The company announced a quarterly dividend of $1.54, representing a dividend yield of 2.1%, with payment scheduled for October 1st.

eCIO Inc. purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 904 shares of the business services provider's stock, valued at approximately $276,000.

Several other large investors have also made changes to their positions in ADP. Brighton Jones LLC lifted its stake in shares of Automatic Data Processing by 92.1% during the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after acquiring an additional 4,808 shares during the period. Bank Pictet & Cie Europe AG acquired a new position in shares of Automatic Data Processing during the fourth quarter valued at $957,000. Bison Wealth LLC lifted its stake in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after acquiring an additional 681 shares during the period. NorthRock Partners LLC increased its holdings in Automatic Data Processing by 346.1% in the fourth quarter. NorthRock Partners LLC now owns 4,961 shares of the business services provider's stock valued at $1,452,000 after purchasing an additional 3,849 shares during the last quarter. Finally, Pathstone Holdings LLC lifted its stake in Automatic Data Processing by 2.1% in the fourth quarter. Pathstone Holdings LLC now owns 88,595 shares of the business services provider's stock valued at $25,973,000 after buying an additional 1,787 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

ADP stock traded up $0.14 during midday trading on Wednesday, reaching $288.83. The company had a trading volume of 550,713 shares, compared to its average volume of 1,713,140. Automatic Data Processing, Inc. has a 1-year low of $272.18 and a 1-year high of $329.93. The stock has a 50 day moving average price of $302.28 and a 200-day moving average price of $304.30. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market capitalization of $116.99 billion, a price-to-earnings ratio of 28.94, a price-to-earnings-growth ratio of 2.66 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, beating 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 firm had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. During the same quarter last year, the business posted $2.09 EPS. The company's 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 expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced 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. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a yield of 2.1%. Automatic Data Processing's payout ratio is presently 61.72%.

Wall Street Analyst Weigh In

ADP has been the topic of several analyst reports. Stifel Nicolaus increased their target price 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. TD Securities increased their target price on Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research note on Wednesday, May 21st. Royal Bank Of Canada reissued a "sector perform" rating and issued a $315.00 target price on shares of Automatic Data Processing in a research note on Thursday, June 5th. Dbs Bank raised Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Finally, Morgan Stanley increased their target price 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. Two investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $314.73.

Insider Activity

In other news, VP Don Mcguire sold 13,599 shares of the stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following the completion of the sale, the vice president directly owned 17,684 shares in the company, valued at $5,244,543.88. This represents a 43.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Maria Black sold 23,605 shares of the stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the sale, the chief executive officer owned 76,161 shares of the company's stock, valued at approximately $22,720,349.52. This trade represents a 23.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 52,516 shares of company stock worth $15,632,410. 0.21% of the stock is owned by insiders.

Automatic Data Processing 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.