Invesco Ltd. Raises Stock Position in Automatic Data Processing, Inc. (NASDAQ:ADP)

Key Points

• Invesco Ltd. increased its holdings in Automatic Data Processing, acquiring an additional 145,161 shares, bringing its total to approximately 4 million shares valued at over $1.23 billion.
• A quarterly dividend of $1.54 will be distributed on October 1st, 2023, reflecting an annualized amount of $6.16 and a yield of 2.0%.
• Automatic Data Processing reported earnings of $2.26 per share for the last quarter, surpassing the analysts' expectation, and revenue increased by 6.3% year-over-year.

Invesco Ltd. lifted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.7% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 4,031,713 shares of the business services provider's stock after purchasing an additional 145,161 shares during the period. Invesco Ltd. owned 0.99% of Automatic Data Processing worth $1,231,809,000 at the end of the most recent quarter.

A number of other large investors also recently made changes to their positions in ADP. von Borstel & Associates Inc. bought a new position in shares of Automatic Data Processing during the first quarter valued at about $30,000. Main Street Group LTD lifted its position in shares of Automatic Data Processing by 50.7% during the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after purchasing an additional 38 shares in the last quarter. Y.D. More Investments Ltd bought a new position in shares of Automatic Data Processing during the first quarter valued at about $35,000. Abound Wealth Management lifted its position in shares of Automatic Data Processing by 58.1% during the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after purchasing an additional 43 shares in the last quarter. Finally, Banque de Luxembourg S.A. bought a new position in shares of Automatic Data Processing during the fourth quarter valued at about $37,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP traded down $3.27 during midday trading on Thursday, hitting $301.68. The company's stock had a trading volume of 1,074,374 shares, compared to its average volume of 1,547,132. The stock has a fifty day moving average price of $306.24 and a 200 day moving average price of $305.55. Automatic Data Processing, Inc. has a one year low of $261.86 and a one year high of $329.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. The firm has a market capitalization of $122.19 billion, a price-to-earnings ratio of 30.23, a P/E/G ratio of 2.80 and a beta of 0.81.

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 the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same quarter in the previous year, the firm posted $2.09 earnings per share. The company's quarterly revenue was up 6.3% compared to the same quarter last year. On average, research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders 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 annualized dividend and a dividend yield of 2.0%. Automatic Data Processing's payout ratio is 61.72%.

Wall Street Analyst Weigh In

ADP has been the topic of a number of recent analyst reports. UBS Group dropped their price target on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research report on Friday, June 13th. Mizuho lifted 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 report on Friday, June 13th. TD Securities lifted their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research report on Wednesday, May 21st. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research report on Thursday, July 10th. Finally, Morgan Stanley lifted their price objective 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. One research analyst has rated the stock with a sell rating, ten have issued a hold rating and two have issued a buy 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 $314.33.

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.