Exchange Traded Concepts LLC Purchases 7,782 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Exchange Traded Concepts LLC boosted its stake in Automatic Data Processing by 141.5%, purchasing 7,782 shares to hold 13,283 shares worth about $3.90 million per its latest SEC filing.
• ADP raised its quarterly dividend to $1.70 per share (from $1.54), implying a $6.80 annualized payout and a ~2.6% yield; the ex-dividend date was Dec 12 and the payment is scheduled for Jan 1.
• Analyst sentiment is mixed-to-cautious: the stock carries a consensus Hold rating with a $306.42 target, while several firms (Wells Fargo, Jefferies, UBS, JPMorgan) have cut price targets or issued underweight/underperform ratings.

Exchange Traded Concepts LLC boosted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 141.5% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 13,283 shares of the business services provider's stock after purchasing an additional 7,782 shares during the quarter. Exchange Traded Concepts LLC's holdings in Automatic Data Processing were worth $3,899,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently added to or reduced their stakes in ADP. Activest Wealth Management lifted its holdings in 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 valued at $25,000 after buying an additional 78 shares during the period. Harbor Asset Planning Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $26,000. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $26,000. Howard Hughes Medical Institute acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $27,000. Finally, Solstein Capital LLC bought a new position in shares of Automatic Data Processing in the 2nd quarter worth $28,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

ADP has been the subject of a number of recent analyst reports. Wells Fargo & Company dropped their price objective on Automatic Data Processing from $288.00 to $272.00 and set an "underweight" rating for the company in a report on Thursday, October 30th. Citigroup started coverage on Automatic Data Processing in a report on Thursday, October 23rd. They set a "neutral" rating and a $303.00 target price on the stock. Jefferies Financial Group reaffirmed an "underperform" rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. UBS Group cut their price target on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 17th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $340.00 to $295.00 and set an "underweight" rating for the company in a report on Thursday, October 30th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $306.42.

Automatic Data Processing Stock Performance

ADP opened at $257.97 on Thursday. The company has a market capitalization of $104.34 billion, a price-to-earnings ratio of 25.47 and a beta of 0.86. The business's 50-day moving average price is $261.66 and its two-hundred day moving average price is $287.15. Automatic Data Processing, Inc. has a 1 year low of $247.18 and a 1 year high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business had revenue of $5.18 billion during the quarter, compared to the consensus estimate of $5.14 billion. During the same period last year, the company earned $2.33 earnings per share. Automatic Data Processing's quarterly revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 1st. Stockholders of record on Friday, December 12th will be paid a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, December 12th. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. This is an increase from Automatic Data Processing's previous quarterly dividend of $1.54. Automatic Data Processing's dividend payout ratio (DPR) is 67.13%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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