Envestnet Portfolio Solutions Inc. Purchases 6,548 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Envestnet Portfolio Solutions increased its ADP position by 63.8% in the second quarter, purchasing 6,548 additional shares for a total holding valued at approximately $3.76 million. Institutional investors collectively own 80.03% of ADP.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, although recent targets range from $270 to $310.
• ADP exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $5.47 billion in revenue, while announcing a quarterly dividend of $1.70 per share, equivalent to a 2.6% annual yield.

Envestnet Portfolio Solutions Inc. increased its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 63.8% in the second quarter, according to its most recent 13F filing with the SEC. The firm owned 16,813 shares of the business services provider's stock after purchasing an additional 6,548 shares during the period. Envestnet Portfolio Solutions Inc.'s holdings in Automatic Data Processing were worth $3,756,000 at the end of the most recent reporting period.

A number of other hedge funds also recently modified their holdings of the business. Premier Financial Group purchased a new stake in Automatic Data Processing in the 2nd quarter worth approximately $37,000. Security National Bank of Sioux City Iowa IA increased its position in Automatic Data Processing by 31.9% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 12,262 shares of the business services provider's stock worth $2,746,000 after purchasing an additional 2,965 shares during the last quarter. Smith Chas P & Associates PA Cpas raised its stake in shares of Automatic Data Processing by 13.5% during the 2nd quarter. Smith Chas P & Associates PA Cpas now owns 150,262 shares of the business services provider's stock worth $33,651,000 after purchasing an additional 17,916 shares in the last quarter. Sequoia Financial Advisors LLC raised its stake in shares of Automatic Data Processing by 8.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 13,170 shares of the business services provider's stock worth $2,949,000 after purchasing an additional 1,066 shares in the last quarter. Finally, MCF Advisors LLC lifted its holdings in shares of Automatic Data Processing by 10.8% during the 2nd quarter. MCF Advisors LLC now owns 7,010 shares of the business services provider's stock valued at $1,580,000 after buying an additional 684 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Insider Activity at Automatic Data Processing

In related news, VP Joseph Desilva sold 631 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president owned 18,824 shares of the company's stock, valued at $5,324,744.88. This trade represents a 3.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at 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 the business's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the transaction, the chief executive officer owned 80,624 shares of the company's stock, valued at $22,648,087.84. This trade represents a 26.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 33,773 shares of company stock valued at $9,450,629 over the last three months. 0.20% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Citigroup lifted their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. UBS Group upped their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. BMO Capital Markets raised their target price on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Cantor Fitzgerald increased their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. Finally, Guggenheim raised their price objective on Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $263.67 on Friday. The stock has a market capitalization of $104.75 billion, a P/E ratio of 24.10, a price-to-earnings-growth ratio of 2.38 and a beta of 0.82. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $294.35. The firm has a 50 day moving average of $270.58 and a 200-day moving average of $235.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82.

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 EPS for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the firm earned $2.26 earnings per share. The business's revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio is presently 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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