Jefferies Financial Group Inc. Buys New Position in Automatic Data Processing, Inc. $ADP

Key Points

• Jefferies Financial Group acquired 577,749 ADP shares worth approximately $129.4 million, making ADP its ninth-largest holding and representing 0.9% of its portfolio.
• ADP exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year.
• ADP announced a quarterly dividend of $1.70 per share, or $6.80 annualized, yielding about 2.4%; analysts maintain a consensus “Hold” rating with a $273.50 price target.

Jefferies Financial Group Inc. purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 577,749 shares of the business services provider's stock, valued at approximately $129,387,000. Automatic Data Processing comprises approximately 0.9% of Jefferies Financial Group Inc.'s investment portfolio, making the stock its 9th largest holding. Jefferies Financial Group Inc. owned 0.15% of Automatic Data Processing at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. Horizon Investments LLC grew its position in shares of Automatic Data Processing by 34.1% in the fourth quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider's stock valued at $6,725,000 after purchasing an additional 6,655 shares during the period. Compass Capital Management Inc. lifted its position in Automatic Data Processing by 3.0% during the fourth quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock worth $52,400,000 after buying an additional 5,899 shares during the period. Northwestern Mutual Wealth Management Co. acquired a new stake in Automatic Data Processing in the 2nd quarter worth about $13,283,000. Royal Capital Wealth Management LLC acquired a new stake in Automatic Data Processing in the 2nd quarter worth about $1,226,000. Finally, DNB Asset Management AS grew its holdings in Automatic Data Processing by 11.1% in the 4th quarter. DNB Asset Management AS now owns 152,697 shares of the business services provider's stock valued at $39,278,000 after buying an additional 15,287 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Up 1.2%

Shares of NASDAQ:ADP opened at $284.68 on Friday. The stock has a 50-day simple moving average of $254.65 and a 200-day simple moving average of $227.55. The stock has a market capitalization of $113.09 billion, a P/E ratio of 26.02 and a beta of 0.81. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $305.31. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

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

Automatic Data Processing Dividend Announcement

The firm 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. The ex-dividend date is Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. Automatic Data Processing's payout ratio is presently 62.16%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 798 shares of the company's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the sale, the vice president owned 13,193 shares of the company's stock, valued at $3,694,040. This represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the sale, the vice president owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 3,332 shares of company stock valued at $898,211. 0.20% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Argus dropped their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Stifel Nicolaus raised their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Cantor Fitzgerald boosted their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. Guggenheim upped their price target on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, BMO Capital Markets increased their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Three 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. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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