Lecap Asset Management Ltd. Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Lecap Asset Management Ltd. has purchased a new position in Automatic Data Processing, Inc. (ADP), acquiring 6,122 shares valued at approximately $1.888 million during the second quarter.
• The company's quarterly earnings exceeded expectations, reporting an EPS of $2.26, beating analysts' estimates of $2.23, alongside a revenue of $5.13 billion—up 6.3% from the previous year.
• Automatic Data Processing declared a quarterly dividend of $1.54 per share, translating to an annualized dividend yield of 2.1% with a payout ratio of 61.72%.

Lecap Asset Management Ltd. purchased a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 6,122 shares of the business services provider's stock, valued at approximately $1,888,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of ADP. Activest Wealth Management raised its holdings 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 buying an additional 78 shares during the period. Clarity Asset Management Inc. acquired a new stake in Automatic Data Processing during the 1st quarter worth about $29,000. von Borstel & Associates Inc. acquired a new stake in Automatic Data Processing during the 1st quarter worth about $30,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing during the 1st quarter worth about $35,000. Finally, Abound Wealth Management raised its holdings in Automatic Data Processing by 58.1% during the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after buying an additional 43 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Down 0.6%

ADP opened at $291.61 on Thursday. The business has a 50 day moving average price of $299.76 and a 200 day moving average price of $303.45. Automatic Data Processing, Inc. has a twelve month low of $272.62 and a twelve month high of $329.93. 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 firm has a market cap of $118.13 billion, a P/E ratio of 29.22, a price-to-earnings-growth ratio of 2.69 and a beta of 0.82.

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 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 company had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.05 billion. During the same period in the previous year, the company earned $2.09 earnings per share. The company's quarterly 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. Research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were issued a dividend of $1.54 per share. The ex-dividend date was Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. Automatic Data Processing's payout ratio is 61.72%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on ADP shares. 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 reaffirmed a "sector perform" rating and set a $315.00 target price on shares of Automatic Data Processing in a research note on Thursday, June 5th. Morgan Stanley lifted their target price on 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. Stifel Nicolaus lifted their target price on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research note on Thursday, July 31st. Finally, Dbs Bank raised 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 nine have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $316.70.

Insider Activity at Automatic Data Processing

In other news, VP Joseph Desilva sold 4,614 shares of the company'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 transaction of $1,368,373.98. Following the completion of the transaction, the vice president directly owned 17,536 shares in the company, valued at $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Maria Black sold 23,605 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $298.32, for a total value of $7,041,843.60. Following the transaction, the chief executive officer owned 76,161 shares of the company's stock, valued at approximately $22,720,349.52. This trade represents a 23.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 52,516 shares of company stock valued at $15,632,410. 0.20% of the stock is owned by corporate insiders.

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.

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