Kestra Investment Management LLC Buys 1,043 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Kestra Investment Management LLC increased its stake in Automatic Data Processing, Inc. by 91.4%, owning a total of 2,184 shares valued at $667,000 after acquiring an additional 1,043 shares.
• A significant number of hedge funds have boosted their holdings in ADP, with GAMMA Investing LLC growing its stake by 34,655.1% during the same period.
• Automatic Data Processing announced a quarterly dividend of $1.54 per share, payable on October 1st, which reflects an annualized yield of 2.1%.

Kestra Investment Management LLC grew its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 91.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,184 shares of the business services provider's stock after acquiring an additional 1,043 shares during the period. Kestra Investment Management LLC's holdings in Automatic Data Processing were worth $667,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in ADP. GAMMA Investing LLC grew its stake in Automatic Data Processing by 34,655.1% in the 1st quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock worth $886,345,000 after acquiring an additional 2,892,660 shares in the last quarter. Nuveen LLC bought a new position in Automatic Data Processing in the 1st quarter worth about $661,771,000. Mackenzie Financial Corp grew its stake in Automatic Data Processing by 128.1% in the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock worth $484,480,000 after acquiring an additional 890,440 shares in the last quarter. Ameriprise Financial Inc. grew its stake in Automatic Data Processing by 15.7% in the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock worth $1,348,805,000 after acquiring an additional 601,400 shares in the last quarter. Finally, SG Americas Securities LLC boosted its stake in shares of Automatic Data Processing by 811.7% during the first quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock valued at $194,806,000 after purchasing an additional 567,664 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on ADP. Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, June 5th. UBS Group dropped their price objective on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research note on Friday, June 13th. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research note on Thursday, July 10th. Morgan Stanley increased their price objective on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Finally, Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Two equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $317.00.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 4,614 shares of the firm's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $1,368,373.98. Following the completion of the transaction, the vice president owned 17,536 shares of the company's stock, valued at approximately $5,200,651.52. This trade represents a 20.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Maria Black sold 23,605 shares of the firm's 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 completion of the transaction, the chief executive officer directly owned 76,161 shares of the company's stock, valued at approximately $22,720,349.52. This represents a 23.66% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 43,191 shares of company stock worth $12,850,464. Corporate insiders own 0.21% of the company's stock.

Automatic Data Processing Trading Down 1.7%

NASDAQ:ADP opened at $295.97 on Monday. Automatic Data Processing, Inc. has a 52 week low of $267.79 and a 52 week high of $329.93. The firm has a 50 day moving average of $304.24 and a 200 day moving average of $305.13. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. The stock has a market capitalization of $119.88 billion, a price-to-earnings ratio of 29.66, a PEG ratio of 2.71 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 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 company had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the prior year, the company posted $2.09 earnings per share. 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. As a group, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

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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