Global Retirement Partners LLC Takes Position in Automatic Data Processing, Inc. $ADP

Key Points

• Global Retirement Partners LLC initiated a position in Automatic Data Processing worth approximately $1.63 million, while institutional investors collectively own 80.03% of ADP’s outstanding shares.
• ADP reported quarterly EPS of $2.64, surpassing estimates of $2.59, while revenue rose 6.8% year over year to $5.47 billion. The company also declared a quarterly dividend of $1.70 per share, representing a 2.6% annualized yield.
• Analysts maintain a consensus “Hold” rating, with an average price target of $273.50; targets range from $190 to $305. Shares recently opened at $266.06.

Global Retirement Partners LLC purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 7,262 shares of the business services provider's stock, valued at approximately $1,626,000.

Other institutional investors have also recently made changes to their positions in the company. Brighton Jones LLC increased its holdings in Automatic Data Processing by 92.1% in the 4th 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 during the period. Bison Wealth LLC boosted its stake in shares of Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after buying an additional 681 shares during the last quarter. Schnieders Capital Management LLC. grew its holdings in Automatic Data Processing by 21.8% during the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after acquiring an additional 225 shares during the period. Osterweis Capital Management Inc. purchased a new stake in Automatic Data Processing in the 2nd quarter worth approximately $108,000. Finally, Diversify Advisory Services LLC increased its holdings in shares of Automatic Data Processing by 17.5% during the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after purchasing an additional 815 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $266.06 on Tuesday. The company has a fifty day simple moving average of $245.82 and a 200-day simple moving average of $225.35. The firm has a market capitalization of $105.69 billion, a price-to-earnings ratio of 24.32 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 0.82. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $310.08.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion during the quarter, compared to analysts' expectations of $5.44 billion. During the same quarter in the prior year, the company earned $2.26 EPS. Automatic Data Processing's revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Insider Activity

In other news, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the transaction, the vice president owned 9,660 shares in the company, valued at $2,565,889.20. The trade was a 19.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Mizuho dropped their target price on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Stifel Nicolaus upped their target price on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Wells Fargo & Company increased their target price on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Jefferies Financial Group dropped their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Finally, Robert W. Baird cut their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $273.50.

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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