Greenland Capital Management LP Invests $1.54 Million in Automatic Data Processing, Inc. $ADP

Key Points

• Greenland Capital Management initiated a $1.54 million position in ADP by purchasing 6,887 shares during the second quarter. Institutional investors collectively own approximately 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.4% yield. The stock opened at $277.62 and trades at a P/E ratio of 25.38.

Greenland Capital Management LP bought a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 6,887 shares of the business services provider's stock, valued at approximately $1,542,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of ADP. Ameritas Advisory Services LLC bought a new stake in Automatic Data Processing during the second quarter worth approximately $435,000. Kintra Wealth LLC purchased a new stake in Automatic Data Processing in the second quarter worth $496,000. Nilsine Partners LLC increased its stake in Automatic Data Processing by 6.5% in the second quarter. Nilsine Partners LLC now owns 6,089 shares of the business services provider's stock worth $1,364,000 after purchasing an additional 374 shares during the period. Nvest Financial LLC lifted its position in shares of Automatic Data Processing by 5.1% during the second quarter. Nvest Financial LLC now owns 8,593 shares of the business services provider's stock worth $1,924,000 after purchasing an additional 419 shares during the last quarter. Finally, Saudi Central Bank boosted its stake in shares of Automatic Data Processing by 88.8% during the second quarter. Saudi Central Bank now owns 28,185 shares of the business services provider's stock valued at $6,312,000 after purchasing an additional 13,256 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Citigroup upped their price target on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. TD Cowen boosted their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. BMO Capital Markets upped their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Finally, Cantor Fitzgerald raised their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $277.62 on Monday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock's fifty day moving average price is $262.37 and its 200-day moving average price is $230.34. The firm has a market cap of $110.29 billion, a P/E ratio of 25.38, a P/E/G ratio of 2.52 and a beta of 0.82. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $302.68.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping analysts' consensus estimates 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 analyst estimates of $5.44 billion. During the same period in the prior year, the firm earned $2.26 earnings per share. The firm's revenue for the quarter 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 research analysts expect that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio is presently 62.16%.

Trending Headlines about Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a yield of approximately 2.4%. The payment reinforces the company’s appeal to income-focused investors and its long record of annual dividend increases. Dividend announcement article
• Neutral Sentiment: ADP’s August employment report showed private-sector payrolls increased by 38,000, while base pay rose 3.2% and gross pay grew 4.7%. The data highlights ADP’s influence as a labor-market information provider, but also points to a moderating hiring environment. ADP August employment report
• Neutral Sentiment: One valuation analysis described ADP as roughly 1% undervalued based on recent labor-market data, while noting that the stock has underperformed the broader technology sector. The limited valuation discount suggests investors may need stronger earnings growth to drive further upside. ADP valuation analysis
• Negative Sentiment: A Seeking Alpha analysis downgraded ADP, arguing that recent operating and market tailwinds are already reflected in the share price. The view adds valuation pressure as ADP trades at a relatively elevated earnings multiple. ADP downgrade analysis
• Negative Sentiment: CEO Maria Black sold 29,810 shares worth about $8.4 million, reducing her direct ownership by roughly 27%. Vice President Joseph Desilva separately sold 631 shares for approximately $178,000. Both transactions were executed under pre-arranged Rule 10b5-1 plans, making them less significant as discretionary bearish signals, though the sales may still weigh on sentiment. ADP insider sales
• Negative Sentiment: August private payroll growth of 38,000 missed the 47,000 forecast and slowed from 44,000 in July. A weaker hiring backdrop could reduce growth in payroll-processing volumes, although lower employment growth may increase expectations for easier Federal Reserve policy. ADP private payrolls report

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 631 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the completion of the sale, the vice president owned 18,824 shares in the company, valued at $5,324,744.88. This represents a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares in the company, valued at $5,158,227.40. This represents a 0.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,773 shares of company stock worth $9,450,629 over the last quarter. 0.20% of the stock is currently owned by company insiders.

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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