Johnson Investment Counsel Inc. Sells 1,188 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Johnson Investment Counsel Inc. reduced its stake in Automatic Data Processing, Inc. by 1.2%, selling 1,188 shares to hold a total of 95,239 shares valued at approximately $29.37 million.
• Automatic Data Processing reported earnings of $2.26 per share in the latest quarter, exceeding analysts' expectations and showing a revenue increase of 6.3% year-over-year.
• The company declared a quarterly dividend of $1.54 per share, marking a dividend yield of 2.2% with a payout ratio of 61.72%.

Johnson Investment Counsel Inc. decreased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.2% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 95,239 shares of the business services provider's stock after selling 1,188 shares during the period. Johnson Investment Counsel Inc.'s holdings in Automatic Data Processing were worth $29,372,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in the business. Bangor Savings Bank lifted its holdings in shares of Automatic Data Processing by 0.7% in the 2nd quarter. Bangor Savings Bank now owns 4,907 shares of the business services provider's stock valued at $1,513,000 after acquiring an additional 34 shares during the last quarter. Ameritas Advisory Services LLC lifted its holdings in shares of Automatic Data Processing by 2.1% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider's stock valued at $502,000 after acquiring an additional 34 shares during the last quarter. Syntegra Private Wealth Group LLC lifted its stake in Automatic Data Processing by 4.7% in the first quarter. Syntegra Private Wealth Group LLC now owns 779 shares of the business services provider's stock worth $238,000 after purchasing an additional 35 shares during the last quarter. Transamerica Financial Advisors LLC lifted its stake in Automatic Data Processing by 1.0% in the first quarter. Transamerica Financial Advisors LLC now owns 3,371 shares of the business services provider's stock worth $1,030,000 after purchasing an additional 35 shares during the last quarter. Finally, Ashton Thomas Securities LLC lifted its stake in Automatic Data Processing by 4.1% in the first quarter. Ashton Thomas Securities LLC now owns 883 shares of the business services provider's stock worth $270,000 after purchasing an additional 35 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP opened at $285.19 on Friday. The firm has a market cap of $115.53 billion, a PE ratio of 28.58, a price-to-earnings-growth ratio of 2.61 and a beta of 0.82. The firm's 50 day simple moving average is $297.26 and its 200-day simple moving average is $303.07. 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 one year low of $272.62 and a one year high of $329.93.

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

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Friday, September 12th were issued a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend was Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is presently 61.72%.

Insider Activity at Automatic Data Processing

In related news, VP David Foskett sold 1,373 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $407,190.61. Following the transaction, the vice president directly owned 11,781 shares of the company's stock, valued at $3,493,891.17. This trade represents a 10.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Joseph Desilva sold 4,614 shares of Automatic Data Processing stock in a transaction that occurred 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 transaction, the vice president directly owned 17,536 shares in the company, valued at approximately $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock valued at $15,632,410 over the last quarter. 0.20% of the stock is owned by insiders.

Analysts Set New Price Targets

Several brokerages have issued reports on ADP. 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 research note on Thursday, July 31st. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a research note on Thursday, July 10th. 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 research note on Thursday, July 31st. Weiss Ratings reissued a "buy (b)" rating on shares of Automatic Data Processing in a research note on Wednesday. Finally, Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Three research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $316.70.

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.

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