Korea Investment CORP Acquires New Position in Automatic Data Processing, Inc. $ADP

Key Points

• Korea Investment CORP acquired 184,621 shares of ADP during the second quarter, valued at approximately $41.3 million. Other institutional investors also initiated positions, bringing institutional ownership to 80.03%.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. The company also issued a quarterly dividend of $1.70 per share, equivalent to a 2.4% annualized yield.
• Analyst sentiment remains mixed: ADP has a consensus “Hold” rating and an average price target of $273.50, while the stock recently traded at $280.81.

Korea Investment CORP acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 184,621 shares of the business services provider's stock, valued at approximately $41,346,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. EP Wealth Advisors LLC purchased a new stake in shares of Automatic Data Processing during the second quarter worth $34,079,000. M1 Capital Management LLC purchased a new position in shares of Automatic Data Processing in the second quarter valued at $293,000. Bard Associates Inc. purchased a new position in shares of Automatic Data Processing in the second quarter valued at $215,000. Pinnacle West Asset Management Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $1,118,000. Finally, Ieq Capital LLC bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $2,875,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Automatic Data Processing stock opened at $280.81 on Friday. The firm's fifty day moving average price is $249.66 and its 200-day moving average price is $226.31. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market cap of $111.55 billion, a P/E ratio of 25.67 and a beta of 0.81. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $308.89.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the previous year, the business earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities research analysts expect that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the sale, the vice president owned 9,660 shares in the company, valued at $2,565,889.20. The trade was a 19.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.20% of the company's stock.

Analysts Set New Price Targets

Several research analysts have commented on the company. Robert W. Baird cut their target price on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Cantor Fitzgerald upped their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. BMO Capital Markets increased their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Stifel Nicolaus increased their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Finally, UBS Group raised their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

Want to see what other hedge funds are holding ADP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source