Automatic Data Processing, Inc. (NASDAQ:ADP) Stock Position Decreased by King Luther Capital Management Corp

Key Points

• King Luther Capital Management Corp reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.4% in the first quarter, holding a total of 65,377 shares valued at approximately $19.975 million.
• Analysts have varied target price adjustments for ADP, with Mizuho increasing their price target from $321 to $332, indicating a general sentiment of hold ratings among several brokerages.
• Automatic Data Processing announced a $1.54 quarterly dividend to be paid on October 1st, representing an annualized dividend of $6.16 and a yield of 2.0%.

King Luther Capital Management Corp lowered its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.4% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 65,377 shares of the business services provider's stock after selling 912 shares during the quarter. King Luther Capital Management Corp's holdings in Automatic Data Processing were worth $19,975,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. von Borstel & Associates Inc. purchased a new stake in Automatic Data Processing in the 1st quarter worth approximately $30,000. Main Street Group LTD boosted its stake in shares of Automatic Data Processing by 50.7% during the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after acquiring an additional 38 shares in the last quarter. Y.D. More Investments Ltd purchased a new position in shares of Automatic Data Processing in the 1st quarter valued at about $35,000. Abound Wealth Management raised its holdings in Automatic Data Processing by 58.1% in the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after purchasing an additional 43 shares during the period. Finally, Banque de Luxembourg S.A. purchased a new position in shares of Automatic Data Processing during the 4th quarter worth $37,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analyst Ratings Changes

A number of research firms have commented on ADP. Stifel Nicolaus upped their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research 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. Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a report on Thursday, June 5th. Morgan Stanley raised their price target 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, UBS Group reduced their price objective on 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. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and two have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $314.33.

Automatic Data Processing Price Performance

NASDAQ:ADP traded down $3.27 during midday trading on Thursday, hitting $301.68. 1,074,370 shares of the stock were exchanged, compared to its average volume of 1,747,010. The business has a 50-day moving average price of $306.73 and a two-hundred day moving average price of $305.54. Automatic Data Processing, Inc. has a one year low of $261.86 and a one year high of $329.93. The company has a market capitalization of $122.19 billion, a price-to-earnings ratio of 30.23, a P/E/G ratio of 2.75 and a beta of 0.81. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data 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 analyst estimates of $5.05 billion. During the same period in the prior year, the firm earned $2.09 earnings per share. The business's quarterly revenue was up 6.3% on a year-over-year basis. Sell-side 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 announced 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. This represents a $6.16 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Friday, September 12th. Automatic Data Processing's payout ratio is 61.72%.

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.