GAMMA Investing LLC Increases Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• GAMMA Investing LLC increased its stake in Automatic Data Processing, Inc. by 14.7% in Q2, bringing its total holdings to worth approximately $3.36 million.
• Several analysts have adjusted their price targets for ADP, with UBS Group lowering theirs to $290.00 while Mizuho raised it to $332.00.
• Automatic Data Processing reported a Q2 earnings per share of $2.26, exceeding estimates, with a year-over-year revenue increase of 6.3% to $5.13 billion.

GAMMA Investing LLC raised its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 14.7% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 10,891 shares of the business services provider's stock after purchasing an additional 1,396 shares during the quarter. GAMMA Investing LLC's holdings in Automatic Data Processing were worth $3,359,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Brighton Jones LLC boosted its holdings in 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 worth $2,935,000 after buying an additional 4,808 shares in the last quarter. Bank Pictet & Cie Europe AG bought a new position in shares of Automatic Data Processing in the fourth quarter valued at $957,000. Bison Wealth LLC raised its stake in shares of Automatic Data Processing by 22.8% during the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after purchasing an additional 681 shares in the last quarter. State of Wyoming raised its position in shares of Automatic Data Processing by 26.1% during the fourth quarter. State of Wyoming now owns 449 shares of the business services provider's stock valued at $131,000 after buying an additional 93 shares during the last quarter. Finally, Fourth Dimension Wealth LLC acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $38,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Automatic Data Processing

In related news, VP Don Mcguire sold 13,599 shares of Automatic Data Processing stock in a transaction dated Wednesday, September 3rd. The stock was 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 owned 17,684 shares in the company, valued at approximately $5,244,543.88. This trade represents a 43.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Michael A. Bonarti sold 8,728 shares of the firm's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the completion of the transaction, the vice president directly owned 80,531 shares in the company, valued at $24,032,866.33. This trade represents a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,516 shares of company stock worth $15,632,410 over the last three months. Company insiders own 0.21% of the company's stock.

Wall Street Analyst Weigh In

ADP has been the topic of a number of recent analyst reports. Stifel Nicolaus raised their target price on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. UBS Group cut their price target on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research note on Wednesday, September 17th. Morgan Stanley upped 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. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a research note on Thursday, July 10th. Finally, Dbs Bank raised Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Two investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $314.73.

Automatic Data Processing Stock Performance

Shares of ADP stock traded up $1.66 during mid-day trading on Monday, reaching $293.66. The stock had a trading volume of 2,134,587 shares, compared to its average volume of 1,719,206. The firm has a market cap of $118.94 billion, a price-to-earnings ratio of 29.42, a PEG ratio of 2.67 and a beta of 0.82. Automatic Data Processing, Inc. has a 1-year low of $272.18 and a 1-year high of $329.93. The business's fifty day moving average is $301.19 and its 200-day moving average is $303.73. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating 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 firm had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.05 billion. During the same quarter in the previous year, the business earned $2.09 EPS. Automatic Data Processing's revenue for the quarter 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. On average, research analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be paid a $1.54 dividend. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's payout ratio is currently 61.72%.

About Automatic Data Processing

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.