Automatic Data Processing, Inc. $ADP Shares Sold by Howard Financial Services LTD.

Key Points

• Howard Financial Services LTD. reduced its holdings in Automatic Data Processing, Inc. by 53.9% in the 2nd quarter, ending with $247,000 worth of shares after selling 935 shares.
• Insider transactions include CEO Maria Black selling 23,605 shares for $7 million, indicating a 23.66% decrease in her ownership.
• Automatic Data Processing recently declared a quarterly dividend of $1.54, with an annualized yield of 2.1% and a dividend payout ratio of 61.72%.

Howard Financial Services LTD. decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 53.9% during the second quarter, according to its most recent disclosure with the SEC. The fund owned 800 shares of the business services provider's stock after selling 935 shares during the period. Howard Financial Services LTD.'s holdings in Automatic Data Processing were worth $247,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of the business. Activest Wealth Management boosted its position in Automatic Data Processing by 2,600.0% in the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after buying an additional 78 shares during the last quarter. Clarity Asset Management Inc. purchased a new stake in Automatic Data Processing in the 1st quarter worth approximately $29,000. von Borstel & Associates Inc. purchased a new stake in Automatic Data Processing in the 1st quarter worth approximately $30,000. Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the 1st quarter worth approximately $35,000. Finally, Abound Wealth Management boosted its position in Automatic Data Processing by 58.1% in the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after purchasing an additional 43 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Trading Up 0.2%

Automatic Data Processing stock traded up $0.63 during midday trading on Friday, reaching $291.58. 1,077,353 shares of the stock traded hands, compared to its average volume of 1,721,913. The company has a 50-day simple moving average of $301.59 and a two-hundred day simple moving average of $304.00. Automatic Data Processing, Inc. has a 12-month low of $272.18 and a 12-month high of $329.93. The firm has a market cap of $118.10 billion, a PE ratio of 29.19, a price-to-earnings-growth ratio of 2.64 and a beta of 0.82. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results 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. The company had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.Automatic Data Processing's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter last year, the company earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be given a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

Insider Buying and Selling

In other news, VP Michael A. Bonarti sold 8,728 shares of the firm's stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the sale, the vice president owned 80,531 shares of the company's stock, valued at approximately $24,032,866.33. This trade represents a 9.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $1,368,373.98. Following the sale, the vice president directly owned 17,536 shares in the company, valued at $5,200,651.52. This trade represents a 20.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 52,516 shares of company stock worth $15,632,410 over the last ninety days. Company insiders own 0.21% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Stifel Nicolaus upped their target price on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. Mizuho upped their target price on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. Morgan Stanley upped their target price on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Finally, Royal Bank Of Canada reissued a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, June 5th. Two research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $314.73.

About Automatic Data Processing

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.