McElhenny Sheffield Capital Management LLC Buys Shares of 8,656 Automatic Data Processing, Inc. $ADP

Key Points

• McElhenny Sheffield Capital Management LLC acquired 8,656 shares of Automatic Data Processing, Inc. (NASDAQ: ADP), valued at approximately $2.67 million, indicating significant institutional interest in the company.
• Automatic Data Processing reported a quarterly EPS of $2.26, surpassing expectations, with revenues reaching $5.13 billion, up 6.3% year-over-year.
• The company announced a quarterly dividend of $1.54 per share, maintaining an annualized yield of 2.1% and a payout ratio of 61.72%.

McElhenny Sheffield Capital Management LLC bought a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 8,656 shares of the business services provider's stock, valued at approximately $2,670,000.

Other institutional investors have also added to or reduced their stakes in the company. Copperwynd Financial LLC bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at about $217,000. Columbus Macro LLC boosted its holdings in shares of Automatic Data Processing by 7.3% in the 2nd quarter. Columbus Macro LLC now owns 23,475 shares of the business services provider's stock valued at $7,240,000 after buying an additional 1,597 shares in the last quarter. Maryland State Retirement & Pension System boosted its holdings in shares of Automatic Data Processing by 3.0% in the 2nd quarter. Maryland State Retirement & Pension System now owns 19,806 shares of the business services provider's stock valued at $6,108,000 after buying an additional 583 shares in the last quarter. Navera Investment Management Ltd. boosted its holdings in shares of Automatic Data Processing by 1.6% in the 2nd quarter. Navera Investment Management Ltd. now owns 728,122 shares of the business services provider's stock valued at $224,529,000 after buying an additional 11,654 shares in the last quarter. Finally, Citizens National Bank Trust Department boosted its holdings in shares of Automatic Data Processing by 1.3% in the 2nd quarter. Citizens National Bank Trust Department now owns 7,680 shares of the business services provider's stock valued at $2,369,000 after buying an additional 97 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $290.70 on Thursday. 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, Inc. has a 12 month low of $272.62 and a 12 month high of $329.93. The company has a 50 day simple moving average of $298.04 and a two-hundred day simple moving average of $303.25. The stock has a market cap of $117.76 billion, a price-to-earnings ratio of 29.13, a PEG ratio of 2.68 and a beta of 0.82.

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 EPS for the quarter, beating the consensus estimate 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 business had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same period in the previous year, the business posted $2.09 EPS. The business'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. As a group, analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ADP. UBS Group lowered their price target on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a report on Wednesday, September 17th. Stifel Nicolaus raised their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" 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 for the company in a research note on Thursday, July 10th. Morgan Stanley lifted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Finally, Mizuho lifted 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 note on Friday, June 13th. Three equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $316.70.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the completion of the sale, the vice president directly owned 80,531 shares in the company, valued at approximately $24,032,866.33. The trade was a 9.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Christopher D'ambrosio sold 597 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $296.90, for a total transaction of $177,249.30. Following the sale, the vice president owned 10,541 shares of the company's stock, valued at approximately $3,129,622.90. The trade was a 5.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 52,516 shares of company stock worth $15,632,410. Corporate insiders own 0.20% 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.

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