Merit Financial Group LLC Purchases 2,811 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Merit Financial Group LLC increased its stake in Automatic Data Processing, Inc. by 16.1%, acquiring an additional 2,811 shares during the second quarter, bringing its total holdings to 20,259 shares valued at approximately $6.25 million.
• ADP's stock received mixed reviews from analysts, with ratings ranging from upgrades to "hold" and a consensus price target of $316.70, indicating cautious optimism for the company.
• The company recently declared a quarterly dividend of $1.54, which translates to an annualized dividend yield of 2.1%, highlighting its commitment to returning value to shareholders.

Merit Financial Group LLC grew its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 16.1% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 20,259 shares of the business services provider's stock after purchasing an additional 2,811 shares during the quarter. Merit Financial Group LLC's holdings in Automatic Data Processing were worth $6,248,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of the company. Simplicity Wealth LLC increased its position in shares of Automatic Data Processing by 7.7% during the 2nd quarter. Simplicity Wealth LLC now owns 9,835 shares of the business services provider's stock valued at $3,033,000 after purchasing an additional 704 shares during the last quarter. Capital City Trust Co. FL grew its position in Automatic Data Processing by 4.6% during the 2nd quarter. Capital City Trust Co. FL now owns 4,464 shares of the business services provider's stock worth $1,377,000 after acquiring an additional 195 shares during the last quarter. LGT Fund Management Co Ltd. grew its position in Automatic Data Processing by 77.1% during the 2nd quarter. LGT Fund Management Co Ltd. now owns 6,200 shares of the business services provider's stock worth $1,912,000 after acquiring an additional 2,700 shares during the last quarter. Quent Capital LLC grew its position in Automatic Data Processing by 5.4% during the 2nd quarter. Quent Capital LLC now owns 1,886 shares of the business services provider's stock worth $582,000 after acquiring an additional 96 shares during the last quarter. Finally, 111 Capital grew its position in Automatic Data Processing by 176.7% during the 2nd quarter. 111 Capital now owns 6,387 shares of the business services provider's stock worth $1,970,000 after acquiring an additional 4,079 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

ADP has been the topic of several recent research reports. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. UBS Group reduced their price target on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 17th. Stifel Nicolaus raised their price target on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price target on the stock in a research report on Thursday, July 10th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Automatic Data Processing in a research report on Saturday, September 27th. Three research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $316.70.

Insider Buying and Selling

In other news, VP Don Mcguire sold 13,599 shares of the firm'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 $4,033,055.43. Following the completion of the transaction, the vice president owned 17,684 shares in the company, valued at $5,244,543.88. This trade represents a 43.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP David Foskett sold 1,373 shares of Automatic Data Processing stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the transaction, the vice president owned 11,781 shares of the company's stock, 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 have sold a total of 52,516 shares of company stock worth $15,632,410 over the last quarter. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Trading Up 0.5%

ADP opened at $291.31 on Monday. The stock has a market cap of $118.01 billion, a PE ratio of 29.19, a PEG 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. The business has a 50 day moving average of $299.08 and a 200-day moving average of $303.44. Automatic Data Processing, Inc. has a 52 week low of $272.62 and a 52 week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The company had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The firm's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter last year, the business posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

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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