Horizon Bancorp Inc. IN Acquires New Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Horizon Bancorp Inc. acquired a new stake of 1,200 shares in Automatic Data Processing, Inc. during Q2, valued at approximately $370,000.
• Automatic Data Processing reported a quarterly earnings per share of $2.26, exceeding analysts' expectations, and had a revenue of $5.13 billion, a year-over-year increase of 6.3%.
• The company declared a quarterly dividend of $1.54 per share, reflecting an annualized rate of $6.16 and a yield of 2.2%.

Horizon Bancorp Inc. IN acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 1,200 shares of the business services provider's stock, valued at approximately $370,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. IFP Advisors Inc raised its position in Automatic Data Processing by 17.9% during the second quarter. IFP Advisors Inc now owns 21,182 shares of the business services provider's stock valued at $6,697,000 after acquiring an additional 3,218 shares in the last quarter. Callan Family Office LLC lifted its stake in shares of Automatic Data Processing by 375.3% in the second quarter. Callan Family Office LLC now owns 22,542 shares of the business services provider's stock worth $6,952,000 after buying an additional 17,799 shares during the last quarter. TFR Capital LLC. acquired a new stake in shares of Automatic Data Processing in the second quarter worth $228,000. Leo Wealth LLC acquired a new stake in shares of Automatic Data Processing in the second quarter worth $253,000. Finally, McElhenny Sheffield Capital Management LLC acquired a new stake in shares of Automatic Data Processing in the second quarter worth $2,670,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $285.89 on Friday. The stock has a market cap of $115.81 billion, a P/E ratio of 28.65, a PEG ratio of 2.66 and a beta of 0.82. The company's 50-day simple moving average is $297.56 and its 200 day simple moving average is $303.16. Automatic Data Processing, Inc. has a twelve month low of $272.62 and a twelve month high of $329.93. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The business had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm's revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, research analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Friday, September 12th were paid a $1.54 dividend. The ex-dividend date of this dividend was Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.2%. Automatic Data Processing's payout ratio is presently 61.72%.

Insiders Place Their Bets

In other news, VP David Foskett sold 1,373 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the sale, the vice president owned 11,781 shares of the company's stock, valued at approximately $3,493,891.17. This represents a 10.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction dated Wednesday, September 3rd. The stock was 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 directly owned 17,536 shares in the company, valued at approximately $5,200,651.52. The trade was a 20.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 52,516 shares of company stock valued at $15,632,410 over the last 90 days. Company insiders own 0.20% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ADP. Mizuho boosted their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. BMO Capital Markets raised 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. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Automatic Data Processing in a research report on Wednesday. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. Finally, UBS Group dropped their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 17th. Three analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of "Hold" and a consensus target price of $316.70.

Automatic Data Processing 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.

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