Automatic Data Processing, Inc. $ADP Shares Sold by Kayne Anderson Rudnick Investment Management LLC

Key Points

• Kayne Anderson Rudnick Investment Management LLC reduced its stake in Automatic Data Processing, Inc. by 8.1%, selling 4,869 shares and now holding 55,485 shares worth approximately $16.95 million.
• Automatic Data Processing reported $2.26 EPS for the last quarter, exceeding analysts' expectations, with revenues totaling $5.13 billion, marking a 6.3% increase year-over-year.
• The company declared a quarterly dividend of $1.54, with an annualized yield of 2.0%, and will distribute this on October 1st to shareholders recorded by September 12th.

Kayne Anderson Rudnick Investment Management LLC reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 8.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 55,485 shares of the business services provider's stock after selling 4,869 shares during the period. Kayne Anderson Rudnick Investment Management LLC's holdings in Automatic Data Processing were worth $16,953,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the stock. AlphaCore Capital LLC purchased a new stake in shares of Automatic Data Processing in the 1st quarter worth approximately $688,000. Golden State Wealth Management LLC lifted its position in shares of Automatic Data Processing by 29.6% in the 1st quarter. Golden State Wealth Management LLC now owns 565 shares of the business services provider's stock worth $173,000 after purchasing an additional 129 shares during the period. GAMMA Investing LLC lifted its position in shares of Automatic Data Processing by 13.8% in the 1st quarter. GAMMA Investing LLC now owns 9,495 shares of the business services provider's stock worth $2,901,000 after purchasing an additional 1,148 shares during the period. Toronto Dominion Bank lifted its position in shares of Automatic Data Processing by 10.2% in the 4th quarter. Toronto Dominion Bank now owns 236,707 shares of the business services provider's stock worth $69,290,000 after purchasing an additional 21,910 shares during the period. Finally, Wealth Enhancement Advisory Services LLC lifted its position in shares of Automatic Data Processing by 8.9% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 250,836 shares of the business services provider's stock worth $76,638,000 after purchasing an additional 20,467 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Down 0.0%

NASDAQ:ADP traded down $0.05 during midday trading on Friday, reaching $304.05. 1,106,856 shares of the stock traded hands, compared to its average volume of 1,470,698. Automatic Data Processing, Inc. has a 12-month low of $267.79 and a 12-month high of $329.93. The business has a 50-day moving average of $304.77 and a two-hundred day moving average of $305.52. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $123.15 billion, a PE ratio of 30.47, a price-to-earnings-growth ratio of 2.78 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same quarter in the prior year, the business posted $2.09 EPS. Automatic Data Processing's revenue for the quarter was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be paid a dividend of $1.54 per share. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.0%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Analysts Set New Price Targets

ADP has been the subject of several research reports. Mizuho upped their price target 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. UBS Group lowered their price target on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research report on Friday, June 13th. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Morgan Stanley increased their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st. Finally, TD Securities increased their target price on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. Two investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $317.00.

Automatic Data Processing Company 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.