KFA Private Wealth Group LLC Makes New $1.30 Million Investment in Automatic Data Processing, Inc. $ADP

Key Points

• KFA Private Wealth Group LLC invested approximately $1.30 million in Automatic Data Processing, acquiring 4,203 shares during the second quarter.
• Multiple institutional investors have increased their positions in Automatic Data Processing, raising overall institutional ownership to 80.03%.
• The company recently announced a quarterly dividend of $1.54 per share, translating to an annualized yield of 2.2%.

KFA Private Wealth Group LLC bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 4,203 shares of the business services provider's stock, valued at approximately $1,296,000.

Other institutional investors also recently bought and sold shares of the company. Activest Wealth Management raised its stake 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 worth $25,000 after acquiring an additional 78 shares during the period. Clarity Asset Management Inc. bought a new stake in shares of Automatic Data Processing during the 1st quarter valued at $29,000. von Borstel & Associates Inc. bought a new stake in Automatic Data Processing during the first quarter valued at about $30,000. Y.D. More Investments Ltd bought a new stake in Automatic Data Processing during the first quarter valued at about $35,000. Finally, Abound Wealth Management raised its holdings in Automatic Data Processing by 58.1% during the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after acquiring an additional 43 shares during the period. 80.03% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Stifel Nicolaus raised their price target on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday, July 31st. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research note on Thursday, July 10th. Morgan Stanley lifted 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 report on Thursday, July 31st. Mizuho lifted their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. Finally, UBS Group reduced their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 17th. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $316.70.

Insider Transactions at Automatic Data Processing

In other news, VP Don Mcguire sold 13,599 shares of the business's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $4,033,055.43. Following the sale, the vice president directly owned 17,684 shares in the company, valued at $5,244,543.88. The trade was a 43.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP David Foskett sold 1,373 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $407,190.61. Following the sale, the vice president directly owned 11,781 shares in the company, valued at $3,493,891.17. The trade was a 10.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 52,516 shares of company stock worth $15,632,410. 0.20% of the stock is currently owned by corporate insiders.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $285.19 on Friday. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 1 year low of $272.62 and a 1 year high of $329.93. The stock's 50 day simple moving average is $297.26 and its two-hundred day simple moving average is $303.06. The company has a market cap of $115.53 billion, a price-to-earnings ratio of 28.58, a PEG ratio of 2.62 and a beta of 0.82.

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, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The business had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. During the same quarter in the previous year, the company posted $2.09 EPS. The company's revenue 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, equities analysts anticipate 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 was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were issued a $1.54 dividend. The ex-dividend date was Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.2%. Automatic Data Processing's payout ratio is 61.72%.

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.

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