Exchange Traded Concepts LLC Cuts Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Exchange Traded Concepts LLC reduced its holdings in Automatic Data Processing, Inc. by 14.1%, owning 5,501 shares valued at approximately $1.70 million after selling 906 shares.
• Automatic Data Processing recently reported an EPS of $2.26 for the quarter, exceeding analysts' estimates and showing a 6.3% year-over-year revenue increase.
• Insider selling was notable, with multiple executives selling significant shares totaling over $15 million in the last three months.

Exchange Traded Concepts LLC trimmed its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 14.1% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 5,501 shares of the business services provider's stock after selling 906 shares during the period. Exchange Traded Concepts LLC's holdings in Automatic Data Processing were worth $1,697,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. GAMMA Investing LLC increased its holdings in Automatic Data Processing by 34,655.1% in the first quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock valued at $886,345,000 after buying an additional 2,892,660 shares in the last quarter. Nuveen LLC purchased a new position in shares of Automatic Data Processing in the 1st quarter valued at about $661,771,000. Mackenzie Financial Corp raised its holdings in Automatic Data Processing by 128.1% in the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock worth $484,480,000 after purchasing an additional 890,440 shares during the period. Ameriprise Financial Inc. boosted its position in shares of Automatic Data Processing by 15.7% during the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after acquiring an additional 601,400 shares during the last quarter. Finally, SG Americas Securities LLC grew its holdings in shares of Automatic Data Processing by 811.7% in the first quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock valued at $194,806,000 after purchasing an additional 567,664 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Up 0.6%

Shares of Automatic Data Processing stock traded up $1.66 during trading hours on Monday, hitting $293.66. The company had a trading volume of 2,134,587 shares, compared to its average volume of 1,719,206. The company's 50-day moving average is $301.38 and its two-hundred day moving average is $303.82. Automatic Data Processing, Inc. has a twelve month low of $272.18 and a twelve month high of $329.93. 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 cap of $118.94 billion, a P/E ratio of 29.42, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) 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 for the quarter, compared to analyst estimates of $5.05 billion. During the same quarter last year, the company posted $2.09 earnings per share. The business's quarterly 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. Analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Insider Buying and Selling

In other news, VP Don Mcguire sold 13,599 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $4,033,055.43. Following the completion of the sale, the vice president directly owned 17,684 shares of the company's stock, valued at approximately $5,244,543.88. This represents a 43.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP David Foskett sold 1,373 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $407,190.61. Following the transaction, the vice president directly owned 11,781 shares in the company, valued at approximately $3,493,891.17. This represents a 10.44% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock valued at $15,632,410 in the last quarter. Corporate insiders own 0.21% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ADP. Stifel Nicolaus increased their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday, July 31st. Morgan Stanley boosted their target price on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research report 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 report on Thursday, July 10th. Dbs Bank raised Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Two investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat, Automatic Data Processing presently has an average rating of "Hold" and a consensus target price of $314.73.

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.