Ethic Inc. Buys 6,294 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Ethic Inc. increased its stake in Automatic Data Processing, Inc. (ADP) by 9.2%, acquiring 6,294 additional shares during the first quarter, bringing its total holdings to 74,643 shares valued at approximately $22.88 million.
• The company reported a net margin of 19.84% and a revenue increase of 6.3% year-over-year for the most recent quarter, with earnings per share (EPS) exceeding analysts' expectations.
• Automatic Data Processing has announced a quarterly dividend of $1.54 per share, payable on October 1st, representing a 2.0% yield based on its current payout ratio of 61.72%.

Ethic Inc. grew its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 9.2% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 74,643 shares of the business services provider's stock after acquiring an additional 6,294 shares during the period. Ethic Inc.'s holdings in Automatic Data Processing were worth $22,881,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in ADP. von Borstel & Associates Inc. bought a new stake in Automatic Data Processing in the 1st quarter valued at about $30,000. Main Street Group LTD lifted its stake in Automatic Data Processing by 50.7% in the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after acquiring an additional 38 shares during the last quarter. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing in the first quarter worth $35,000. Abound Wealth Management raised its stake in Automatic Data Processing by 58.1% during the 1st 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. Finally, Banque de Luxembourg S.A. bought a new stake in Automatic Data Processing in the 4th quarter valued at $37,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have issued reports on ADP. Stifel Nicolaus upped their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. Morgan Stanley lifted their target price on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. UBS Group dropped their price target on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research note on Friday, June 13th. Royal Bank Of Canada reissued a "sector perform" rating and set a $315.00 target price on shares of Automatic Data Processing in a research note on Thursday, June 5th. Finally, BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a report on Thursday, July 10th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and two have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $314.33.

Automatic Data Processing Stock Up 0.0%

NASDAQ ADP traded up $0.11 on Friday, reaching $301.79. The company had a trading volume of 1,362,355 shares, compared to its average volume of 1,520,591. The stock has a market capitalization of $122.24 billion, a P/E ratio of 30.24, a P/E/G ratio of 2.77 and a beta of 0.81. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. The company's fifty day moving average is $305.74 and its 200 day moving average is $305.62. Automatic Data Processing, Inc. has a 52-week low of $262.21 and a 52-week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $5.05 billion. During the same quarter in the prior year, the company earned $2.09 EPS. The firm's quarterly revenue was up 6.3% compared to the same quarter last year. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors 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 dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

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.