Lewis Asset Management LLC Increases Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Lewis Asset Management LLC increased its stake in Automatic Data Processing, Inc. by 260.8% in Q2, holding 3,875 shares worth approximately $1.20 million.
• Institutional investors own 80.03% of Automatic Data Processing's stock, indicating strong market confidence in the company.
• The company declared a $1.54 quarterly dividend, aiming for an annualized dividend yield of 2.1% with a payout ratio of 61.72%.

Lewis Asset Management LLC boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 260.8% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,875 shares of the business services provider's stock after acquiring an additional 2,801 shares during the period. Lewis Asset Management LLC's holdings in Automatic Data Processing were worth $1,195,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also modified their holdings of the company. Activest Wealth Management increased its stake in Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after purchasing an additional 78 shares during the period. Clarity Asset Management Inc. purchased a new stake in Automatic Data Processing in the first quarter valued at approximately $29,000. von Borstel & Associates Inc. purchased a new stake in shares of Automatic Data Processing during the first quarter worth approximately $30,000. Y.D. More Investments Ltd purchased a new position in Automatic Data Processing in the first quarter worth $35,000. Finally, Abound Wealth Management grew its holdings in Automatic Data Processing by 58.1% in the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after purchasing an additional 43 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Stifel Nicolaus lifted their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Morgan Stanley upped their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a report on Thursday, July 10th. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Finally, Mizuho upped their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Two equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and an average price target of $314.73.

Automatic Data Processing Stock Performance

NASDAQ ADP traded up $1.66 during trading hours on Monday, hitting $293.66. The company had a trading volume of 2,134,587 shares, compared to its average volume of 1,719,206. The business has a fifty day simple moving average of $301.19 and a 200-day simple moving average of $303.73. Automatic Data Processing, Inc. has a fifty-two week low of $272.18 and a fifty-two week high of $329.93. The firm has a market cap of $118.94 billion, a P/E ratio of 29.42, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82. The company has a quick ratio of 1.05, a current 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 results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. The company had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The business's quarterly revenue was up 6.3% on a year-over-year basis. During the same period last year, the business earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

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

Insider Buying and Selling at Automatic Data Processing

In related 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 value of $1,368,373.98. Following the transaction, the vice president owned 17,536 shares in the company, valued at approximately $5,200,651.52. This represents a 20.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP David Foskett sold 1,373 shares of the firm'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 $407,190.61. Following the sale, the vice president owned 11,781 shares in the company, valued at $3,493,891.17. The trade was a 10.44% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock worth $15,632,410 in the last 90 days. Company insiders own 0.21% of the company's stock.

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.