Jacobs Levy Equity Management Inc. Boosts Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Jacobs Levy Equity Management Inc. significantly increased its stake in Automatic Data Processing, Inc. (ADP) by 110.1%, acquiring 319,132 shares and holding a total worth approximately $186.07 million.
• Automatic Data Processing reported a quarterly earnings per share (EPS) of $2.26, exceeding expectations and showing a 6.3% year-over-year revenue increase with a quarterly revenue of $5.13 billion.
• The company will pay a quarterly dividend of $1.54 per share on October 1st, representing an annualized dividend yield of 2.0% and a payout ratio of 61.72%.

Jacobs Levy Equity Management Inc. increased its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 110.1% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 608,997 shares of the business services provider's stock after acquiring an additional 319,132 shares during the period. Automatic Data Processing makes up about 0.7% of Jacobs Levy Equity Management Inc.'s holdings, making the stock its 22nd biggest position. Jacobs Levy Equity Management Inc. owned 0.15% of Automatic Data Processing worth $186,067,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Activest Wealth Management raised its holdings in Automatic Data Processing by 2,600.0% during the 1st 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. bought a new position in shares of Automatic Data Processing in the 1st quarter worth about $29,000. von Borstel & Associates Inc. purchased a new stake in Automatic Data Processing during the 1st quarter valued at about $30,000. Main Street Group LTD grew its position in Automatic Data Processing by 50.7% during the 4th 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 during the last quarter. Finally, Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing during the 1st quarter valued at about $35,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock traded down $1.19 on Tuesday, hitting $297.24. 1,275,326 shares of the company traded hands, compared to its average volume of 1,718,711. The stock has a market capitalization of $120.39 billion, a P/E ratio of 29.78, a price-to-earnings-growth ratio of 2.71 and a beta of 0.82. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing, Inc. has a 52 week low of $270.71 and a 52 week high of $329.93. The business has a 50-day simple moving average of $304.04 and a 200 day simple moving average of $305.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data 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. The firm 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 company's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter last year, the business posted $2.09 earnings per share. 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 firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be issued a $1.54 dividend. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. Automatic Data Processing's payout ratio is 61.72%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on ADP shares. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. TD Securities raised their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. Morgan Stanley raised 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 report on Thursday, July 31st. 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 report on Thursday, July 10th. Finally, Stifel Nicolaus raised their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Two investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $317.00.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 4,614 shares of Automatic Data Processing stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the completion of the transaction, the vice president directly owned 17,536 shares of the company's stock, valued at $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Maria Black sold 23,605 shares of Automatic Data Processing stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the transaction, the chief executive officer directly owned 76,161 shares of the company's stock, valued at $22,720,349.52. The trade was a 23.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 43,191 shares of company stock valued at $12,850,464. Corporate insiders own 0.21% of the company's stock.

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.