Navera Investment Management Ltd. Buys 11,654 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Navera Investment Management Ltd. increased its stake in Automatic Data Processing, Inc. by 1.6%, holding 728,122 shares, with the investment valued at $224,529,000.
• Automatic Data Processing reported a Q2 earnings per share of $2.26, exceeding analysts' expectations of $2.23, and its revenue for the quarter was $5.13 billion.
• The company declared a quarterly dividend of $1.54, marking a 2.1% yield, with an annualized payout of $6.16.

Navera Investment Management Ltd. lifted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.6% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 728,122 shares of the business services provider's stock after purchasing an additional 11,654 shares during the quarter. Automatic Data Processing comprises approximately 4.1% of Navera Investment Management Ltd.'s holdings, making the stock its 15th largest position. Navera Investment Management Ltd. owned 0.18% of Automatic Data Processing worth $224,529,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in ADP. Nuveen LLC bought a new stake in shares of Automatic Data Processing in the 1st quarter worth approximately $661,771,000. Mackenzie Financial Corp lifted its position in Automatic Data Processing by 128.1% in the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock valued at $484,480,000 after acquiring an additional 890,440 shares in the last quarter. Ameriprise Financial Inc. lifted its position in Automatic Data Processing by 15.7% in the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after acquiring an additional 601,400 shares in the last quarter. SG Americas Securities LLC lifted its position in Automatic Data Processing by 811.7% in the 1st quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock valued at $194,806,000 after acquiring an additional 567,664 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in Automatic Data Processing by 22.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,059,100 shares of the business services provider's stock valued at $934,647,000 after acquiring an additional 564,187 shares in the last quarter. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $292.94 on Wednesday. The business's fifty day moving average price is $298.44 and its 200-day moving average price is $303.34. The stock has a market capitalization of $118.67 billion, a price-to-earnings ratio of 29.35, a PEG ratio of 2.66 and a beta of 0.82. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 1-year low of $272.62 and a 1-year high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating the consensus estimate of $2.23 by $0.03. The firm had revenue of $5.13 billion for 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 company's revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed 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 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Friday, September 12th. Automatic Data Processing's dividend payout ratio is 61.72%.

Analyst Ratings Changes

Several research firms recently issued reports on ADP. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Automatic Data Processing in a research report on Saturday, September 27th. Dbs Bank raised Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Morgan Stanley upped their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st. UBS Group lowered their price objective 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. Finally, BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research report on Thursday, July 10th. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $316.70.

Insider Transactions at Automatic Data Processing

In other news, VP Michael A. Bonarti sold 8,728 shares of the company's 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 directly owned 80,531 shares in the company, valued at $24,032,866.33. This represents a 9.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, VP Christopher D'ambrosio sold 597 shares of the company's stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $296.90, for a total value of $177,249.30. Following the completion of the sale, the vice president owned 10,541 shares of the company's stock, valued at $3,129,622.90. This trade represents a 5.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock worth $15,632,410 over the last three months. 0.20% of the stock is currently owned by insiders.

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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