NewEdge Advisors LLC Has $21.20 Million Stake in Automatic Data Processing, Inc. $ADP

Key Points

• NewEdge Advisors reduced its ADP stake by 7.2% in the second quarter, selling 7,366 shares and retaining 94,658 shares valued at approximately $21.2 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• Analysts raised several price targets, but overall sentiment remains cautious: ADP has a consensus rating of “Hold” and an average price target of $273.50.
• ADP exceeded quarterly expectations with $2.64 in earnings per share and $5.47 billion in revenue, while revenue rose 6.8% year over year. The company also announced a quarterly dividend of $1.70 per share, equivalent to a 2.5% annual yield.

NewEdge Advisors LLC reduced its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 7.2% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 94,658 shares of the business services provider's stock after selling 7,366 shares during the quarter. NewEdge Advisors LLC's holdings in Automatic Data Processing were worth $21,199,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in ADP. California State Teachers Retirement System lifted its holdings in Automatic Data Processing by 22,166.8% during the 2nd quarter. California State Teachers Retirement System now owns 140,971,822 shares of the business services provider's stock valued at $31,570,640,000 after purchasing an additional 140,338,719 shares during the last quarter. BlackRock Inc. bought a new position in shares of Automatic Data Processing in the second quarter valued at about $8,097,229,000. State Street Corp lifted its stake in shares of Automatic Data Processing by 0.7% during the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock worth $4,903,769,000 after buying an additional 133,039 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Automatic Data Processing by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock worth $2,977,777,000 after buying an additional 136,876 shares during the last quarter. Finally, Capital Research Global Investors boosted its holdings in shares of Automatic Data Processing by 4.6% during the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock worth $2,159,088,000 after buying an additional 372,413 shares during the period. 80.03% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages recently commented on ADP. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. TD Cowen boosted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a report on Monday, July 6th. Citigroup upped their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. UBS Group increased their target price on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Finally, Wells Fargo & Company lifted their price target on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $273.50.

Insiders Place Their Bets

In other Automatic Data Processing news, CEO Maria Black sold 29,810 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the transaction, the chief executive officer owned 80,624 shares of the company's stock, valued at approximately $22,648,087.84. The trade was a 26.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 33,773 shares of company stock valued at $9,450,629. 0.20% of the stock is owned by corporate insiders.

Automatic Data Processing Stock Up 0.8%

Shares of ADP opened at $267.33 on Friday. The firm has a 50 day simple moving average of $265.40 and a two-hundred day simple moving average of $231.87. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $299.22. The company has a market cap of $106.20 billion, a P/E ratio of 24.44, a P/E/G ratio of 2.40 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter last year, the business posted $2.26 EPS. The company's revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts forecast that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.5%. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services.

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