Automatic Data Processing, Inc. $ADP Shares Bought by Gotham Asset Management LLC

Key Points

• Gotham Asset Management LLC increased its stake in Automatic Data Processing, Inc. by 9.3% in Q1, holding 88,365 shares valued at approximately $27 million.
• Several hedge funds, including Vanguard Group and Goldman Sachs Group, have also raised their positions in ADP, indicating strong institutional interest with 80.03% of the stock owned by institutions.
• Automatic Data Processing reported Q1 earnings per share of $2.26, slightly surpassing estimates, with a revenue increase of 6.3% year-over-year and announced a quarterly dividend of $1.54.

Gotham Asset Management LLC increased its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 9.3% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 88,365 shares of the business services provider's stock after buying an additional 7,483 shares during the period. Gotham Asset Management LLC's holdings in Automatic Data Processing were worth $26,998,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Hancock Whitney Corp boosted its holdings in shares of Automatic Data Processing by 3.6% during the 1st quarter. Hancock Whitney Corp now owns 10,094 shares of the business services provider's stock valued at $3,084,000 after purchasing an additional 355 shares during the last quarter. Banque Transatlantique SA boosted its holdings in shares of Automatic Data Processing by 3,075.1% during the 1st quarter. Banque Transatlantique SA now owns 5,874 shares of the business services provider's stock valued at $1,659,000 after purchasing an additional 5,689 shares during the last quarter. Alyeska Investment Group L.P. bought a new position in shares of Automatic Data Processing during the 1st quarter valued at about $18,640,000. Ancora Advisors LLC boosted its holdings in shares of Automatic Data Processing by 37.2% during the 1st quarter. Ancora Advisors LLC now owns 11,057 shares of the business services provider's stock valued at $3,378,000 after purchasing an additional 2,999 shares during the last quarter. Finally, Aprio Wealth Management LLC boosted its holdings in shares of Automatic Data Processing by 64.7% during the 1st quarter. Aprio Wealth Management LLC now owns 2,365 shares of the business services provider's stock valued at $723,000 after purchasing an additional 929 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

ADP has been the subject of several research reports. Royal Bank Of Canada reissued a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a report on Thursday, June 5th. Mizuho upped their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research report on Thursday, July 10th. 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. Finally, Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Two analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and an average target price of $317.00.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Don Mcguire sold 13,599 shares of the firm's stock in a transaction that occurred on 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 in the company, valued at $5,244,543.88. This trade represents a 43.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the completion of the sale, the vice president owned 17,536 shares of the company's stock, valued at approximately $5,200,651.52. This trade represents a 20.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 43,191 shares of company stock valued at $12,850,464 in the last ninety days. Company insiders own 0.21% of the company's stock.

Automatic Data Processing Stock Down 0.4%

Shares of NASDAQ ADP traded down $1.19 during midday trading on Tuesday, reaching $297.24. 1,275,326 shares of the company's stock traded hands, compared to its average volume of 1,718,711. 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 stock's 50 day simple moving average is $304.04 and its 200-day simple moving average is $305.05. Automatic Data Processing, Inc. has a one year low of $270.71 and a one year high of $329.93. The company has a market cap of $120.39 billion, a price-to-earnings ratio of 29.78, a P/E/G ratio of 2.71 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. During the same period last year, the firm earned $2.09 earnings per share. The company's quarterly revenue was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS 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. Stockholders of record on Friday, September 12th will be paid a dividend of $1.54 per share. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

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.