IFP Advisors Inc Has $1.98 Million Stock Position in Automatic Data Processing, Inc. $ADP

Key Points

• IFP Advisors cut its ADP stake by 44.3% during the second quarter, selling 7,033 shares and retaining 8,843 shares valued at approximately $1.98 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• ADP reported quarterly earnings of $2.64 per share, exceeding estimates of $2.59, while revenue rose 6.8% year over year to $5.47 billion. The company also announced a quarterly dividend of $1.70 per share, representing a 2.5% annualized yield.
• Analysts have a consensus “Hold” rating on ADP, with an average price target of $273.50. The stock recently traded at $268.26, while company insiders sold about $9.45 million worth of shares over the past 90 days.

IFP Advisors Inc lowered its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 44.3% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 8,843 shares of the business services provider's stock after selling 7,033 shares during the quarter. IFP Advisors Inc's holdings in Automatic Data Processing were worth $1,980,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in ADP. Brighton Jones LLC raised its stake in shares of Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after purchasing an additional 4,808 shares during the period. Bison Wealth LLC boosted its position in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after buying an additional 681 shares during the period. Schnieders Capital Management LLC. grew its holdings in shares of Automatic Data Processing by 21.8% during the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after buying an additional 225 shares in the last quarter. Osterweis Capital Management Inc. bought a new position in shares of Automatic Data Processing during the second quarter worth about $108,000. Finally, Diversify Advisory Services LLC raised its position in Automatic Data Processing by 17.5% in the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after buying an additional 815 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on ADP. Wells Fargo & Company upped their price target on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. BMO Capital Markets lifted their price objective 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. Citigroup boosted their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research report on Thursday, July 30th. Stifel Nicolaus increased their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Finally, Guggenheim raised their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $273.50.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $268.26 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a 50 day moving average price of $265.91 and a 200 day moving average price of $232.12. The stock has a market capitalization of $106.57 billion, a PE ratio of 24.52, a price-to-earnings-growth ratio of 2.43 and a beta of 0.82. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $296.86.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the firm earned $2.26 EPS. The business's quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's payout ratio is presently 62.16%.

Insider Activity

In other news, VP Joseph Desilva sold 631 shares of Automatic Data Processing stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president owned 18,824 shares of the company's stock, valued at $5,324,744.88. This trade represents a 3.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the transaction, the chief executive officer owned 80,624 shares in the company, valued at $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,773 shares of company stock valued at $9,450,629 in the last ninety days. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services.

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