Haverford Trust Co Invests $27.30 Million in Automatic Data Processing, Inc. $ADP

Key Points

• Haverford Trust acquired 121,892 ADP shares worth approximately $27.3 million during the second quarter, while institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share on $5.47 billion in revenue, with revenue rising 6.8% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50; ADP also announced a quarterly dividend of $1.70 per share, equating to a 2.4% yield.

Haverford Trust Co purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 121,892 shares of the business services provider's stock, valued at approximately $27,298,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Imprint Wealth LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at approximately $26,000. Bard Associates Inc. purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at approximately $28,000. Whipplewood Advisors LLC increased its holdings in shares of Automatic Data Processing by 2,740.0% in the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after purchasing an additional 137 shares during the period. Finally, Prosperity Bancshares Inc acquired a new position in shares of Automatic Data Processing in the fourth quarter valued at approximately $33,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Activity

In related news, VP David Kwon sold 2,414 shares of the company's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the sale, the vice president owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. This represents a 19.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Stifel Nicolaus increased their price target on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Wells Fargo & Company boosted their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. UBS Group upped their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Argus reduced their target price on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Finally, BMO Capital Markets lifted their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $280.81 on Friday. The firm has a market capitalization of $111.55 billion, a PE ratio of 25.67 and a beta of 0.81. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $308.89. The firm's 50-day simple moving average is $249.66 and its 200 day simple moving average is $226.31. 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 (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period last year, the firm posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities research analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis 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 (DPR) is 62.16%.

About Automatic Data Processing

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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