Mengis Capital Management Inc. Cuts Stock Position in Automatic Data Processing, Inc. $ADP

Key Points

• Mengis Capital Management Inc. has reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 50.4%, now owning 5,046 shares valued at approximately $1.56 million.
• Automatic Data Processing reported $2.26 EPS for the last quarter, exceeding estimates, with revenue of $5.13 billion, marking a year-over-year growth of 6.3%.
• The company recently declared a quarterly dividend of $1.54, which represents an annualized rate of $6.16 and a yield of 2.2%.

Mengis Capital Management Inc. reduced its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 50.4% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,046 shares of the business services provider's stock after selling 5,127 shares during the quarter. Mengis Capital Management Inc.'s holdings in Automatic Data Processing were worth $1,556,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Commerzbank Aktiengesellschaft FI boosted its holdings in shares of Automatic Data Processing by 186.1% in the 2nd quarter. Commerzbank Aktiengesellschaft FI now owns 39,735 shares of the business services provider's stock worth $12,255,000 after purchasing an additional 25,845 shares in the last quarter. Stiles Financial Services Inc boosted its holdings in Automatic Data Processing by 1.1% during the 2nd quarter. Stiles Financial Services Inc now owns 3,614 shares of the business services provider's stock valued at $1,115,000 after acquiring an additional 38 shares during the period. Horizon Bancorp Inc. IN purchased a new stake in Automatic Data Processing during the 2nd quarter valued at about $370,000. IFP Advisors Inc boosted its holdings in Automatic Data Processing by 17.9% during the 2nd quarter. IFP Advisors Inc now owns 21,182 shares of the business services provider's stock valued at $6,697,000 after acquiring an additional 3,218 shares during the period. Finally, Callan Family Office LLC boosted its holdings in Automatic Data Processing by 375.3% during the 2nd quarter. Callan Family Office LLC now owns 22,542 shares of the business services provider's stock valued at $6,952,000 after acquiring an additional 17,799 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 1.7%

Shares of NASDAQ:ADP opened at $285.89 on Friday. Automatic Data Processing, Inc. has a 52-week low of $272.62 and a 52-week high of $329.93. The firm has a market capitalization of $115.81 billion, a P/E ratio of 28.65, a P/E/G ratio of 2.66 and a beta of 0.82. The stock has a 50 day moving average price of $297.56 and a 200-day moving average price of $303.16. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results 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. The firm had revenue of $5.13 billion during the quarter, compared to analyst estimates 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 revenue was up 6.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Friday, September 12th were paid a $1.54 dividend. The ex-dividend date was Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.2%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

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 on Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total value of $2,604,697.04. Following the completion of the sale, the vice president owned 80,531 shares of the company's stock, valued at approximately $24,032,866.33. This trade represents a 9.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Don Mcguire sold 13,599 shares of Automatic Data Processing stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $4,033,055.43. Following the completion of the sale, the vice president directly owned 17,684 shares of the company's stock, valued at approximately $5,244,543.88. The trade was a 43.47% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 52,516 shares of company stock worth $15,632,410. Insiders own 0.20% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ADP. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a report on Thursday, July 10th. Morgan Stanley increased their target price on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. UBS Group dropped their target price on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a report on Wednesday, September 17th. Mizuho increased their target price on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. Finally, Dbs Bank raised Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Three research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $316.70.

Automatic Data Processing 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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