NBT Bank N.A. Buys 32,415 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• NBT Bank acquired 32,415 ADP shares in the third quarter, worth approximately $8.4 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• Analysts maintain a generally cautious outlook, with an average rating of “Hold” and an average price target of $273.50, despite several firms raising their targets and Guggenheim assigning a “Buy” rating.
• ADP recently exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $5.47 billion in revenue, while paying a quarterly dividend of $1.70, equivalent to a 2.2% yield.

NBT Bank N.A. bought a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 32,415 shares of the business services provider's stock, valued at approximately $8,365,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of ADP. BlackRock Inc. acquired a new stake in Automatic Data Processing during the second quarter worth approximately $8,097,229,000. Bank of America Corp DE bought a new stake in Automatic Data Processing in the second quarter worth approximately $1,231,175,000. Deutsche Bank AG acquired a new position in Automatic Data Processing in the second quarter valued at approximately $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Automatic Data Processing by 3.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider's stock valued at $952,112,000 after buying an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $725,513,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ADP. TD Cowen boosted their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. BMO Capital Markets raised their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Stifel Nicolaus raised their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. UBS Group lifted their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Finally, Guggenheim upped their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Trading Up 4.6%

Shares of ADP stock opened at $307.94 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market capitalization of $122.02 billion, a price-to-earnings ratio of 28.15, a PEG ratio of 2.67 and a beta of 0.83. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $308.63. The company has a 50-day simple moving average of $274.83 and a two-hundred day simple moving average of $245.07.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the previous year, the business posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were issued a $1.70 dividend. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.2%. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Brian Michaud sold 120 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the transaction, the vice president directly owned 18,442 shares of the company's stock, valued at $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president owned 18,824 shares of the company's stock, valued at approximately $5,324,744.88. This represents a 3.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,773 shares of company stock valued at $9,450,629 in the last quarter. Corporate insiders own 0.15% of the company's stock.

Key Stories Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Analysts expect ADP to report low-double-digit earnings growth in its upcoming first-quarter results, raising expectations for another strong print and potentially supportive guidance. Automatic Data Processing’s Quarterly Earnings Preview: What You Need to Know
• Positive Sentiment: A valuation analysis suggests ADP could trade at a roughly 17% premium based on its cash-flow generation, reinforcing the bullish case for the company’s predictable, recurring revenue model. Automatic Data Processing Stock Could Trade At A 17% Premium On Cash Flow
• Positive Sentiment: ADP reached a new 52-week high ahead of earnings, signaling strong investor momentum and confidence in the company’s operating outlook. Automatic Data Processing Stock Reaches a 52-Week High Ahead of Results
• Neutral Sentiment: ADP is scheduled to release quarterly results on October 28 before the Xetra market opens, giving investors a near-term catalyst while also increasing the risk of volatility if results or guidance disappoint. ADP Stock Has Results Scheduled October 28 Ahead of Xetra Open
• Neutral Sentiment: Broader concern that the artificial-intelligence trade may be weakening could encourage some investors to favor established, income-oriented companies such as ADP, although a wider market selloff could still weigh on the shares. The All-In Hosts Asked If the AI Trade Is Cracking

Automatic Data Processing Profile

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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