MAI Capital Management Trims Stake in Automatic Data Processing, Inc. $ADP

Key Points

• MAI Capital Management reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 2.3%, selling 954 shares, leaving them with a total of 41,060 shares valued at approximately $12.5 million.
• In the first quarter, several institutional investors increased their stakes in ADP, with GAMMA Investing LLC growing its holdings by an astonishing 34,655.1% after acquiring nearly 2.9 million shares.
• Automatic Data Processing reported a quarterly EPS of $2.26, exceeding analysts' expectations, and announced a quarterly dividend of $1.54 per share, reflecting an annualized yield of 2.0%.

MAI Capital Management lowered its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 41,060 shares of the business services provider's stock after selling 954 shares during the quarter. MAI Capital Management's holdings in Automatic Data Processing were worth $12,545,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently added to or reduced their stakes in ADP. Activest Wealth Management boosted its position 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 valued at $25,000 after purchasing an additional 78 shares in the last quarter. Clarity Asset Management Inc. bought a new stake in Automatic Data Processing during the first quarter valued at about $29,000. von Borstel & Associates Inc. purchased a new stake in Automatic Data Processing in the first quarter valued at about $30,000. Main Street Group LTD raised its stake in Automatic Data Processing by 50.7% in the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after buying an additional 38 shares during the last quarter. Finally, Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the first quarter valued at about $35,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP traded down $0.91 during trading on Wednesday, hitting $298.86. The stock had a trading volume of 1,447,346 shares, compared to its average volume of 1,358,456. Automatic Data Processing, Inc. has a 12-month low of $267.79 and a 12-month high of $329.93. The stock has a market capitalization of $121.05 billion, a price-to-earnings ratio of 29.95, a price-to-earnings-growth ratio of 2.78 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. The stock has a 50-day simple moving average of $304.42 and a two-hundred day simple moving average of $305.38.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same period last year, the business posted $2.09 earnings per share. The company's revenue for the quarter 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. On average, equities research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Analysts Set New Price Targets

A number of equities research analysts have commented on ADP shares. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Morgan Stanley increased their price target 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. UBS Group decreased their price target on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research note on Friday, June 13th. Mizuho increased their price target on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research note on Friday, June 13th. Finally, Stifel Nicolaus increased their price target 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. Two analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $317.00.

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.