NewEdge Advisors LLC Boosts Stake in Automatic Data Processing, Inc. $ADP

Key Points

• NewEdge Advisors LLC increased its holdings in Automatic Data Processing, Inc. by 0.7% during Q1, purchasing 1,389 shares to bring its total to 196,558 shares, valued at approximately $60 million.
• Other large investors also significantly boosted their stakes, with GAMMA Investing LLC increasing its holdings by over 34,655% during the same quarter.
• Automatic Data Processing reported Q2 earnings of $2.26 per share, surpassing estimates, and announced a quarterly dividend of $1.54 per share, payable October 1st.

NewEdge Advisors LLC raised its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 0.7% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 196,558 shares of the business services provider's stock after purchasing an additional 1,389 shares during the quarter. NewEdge Advisors LLC's holdings in Automatic Data Processing were worth $60,054,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Automatic Data Processing by 0.5% in the 1st quarter. Vanguard Group Inc. now owns 40,949,884 shares of the business services provider's stock worth $12,511,418,000 after purchasing an additional 218,614 shares during the period. Ameriprise Financial Inc. raised 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 worth $1,348,805,000 after purchasing an additional 601,400 shares during the period. Invesco Ltd. raised its position in Automatic Data Processing by 3.7% in the 1st quarter. Invesco Ltd. now owns 4,031,713 shares of the business services provider's stock worth $1,231,809,000 after purchasing an additional 145,161 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Automatic Data Processing by 16.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,771,011 shares of the business services provider's stock worth $1,103,888,000 after purchasing an additional 532,485 shares during the period. Finally, Goldman Sachs Group Inc. raised 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 worth $934,647,000 after purchasing an additional 564,187 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. UBS Group reduced their target price on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research report on Friday, June 13th. Mizuho raised their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $315.00 target price on shares of Automatic Data Processing in a research report on Thursday, June 5th. Stifel Nicolaus raised their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Finally, Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Two investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $317.00.

Insider Activity

In other Automatic Data Processing news, VP Don Mcguire sold 13,599 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The shares were 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 in the company, valued at $5,244,543.88. This trade represents a 43.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Maria Black sold 23,605 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the completion of the sale, the chief executive officer owned 76,161 shares of the company's stock, valued at approximately $22,720,349.52. This trade represents a 23.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 43,191 shares of company stock valued at $12,850,464 in the last ninety days. 0.21% of the stock is currently owned by insiders.

Automatic Data Processing Stock Down 1.7%

Shares of NASDAQ ADP traded down $5.22 during midday trading on Friday, reaching $295.97. 1,892,440 shares of the company's stock traded hands, compared to its average volume of 1,392,009. 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 stock's 50 day simple moving average is $304.24 and its 200-day simple moving average is $305.13. Automatic Data Processing, Inc. has a one year low of $267.79 and a one year high of $329.93. The company has a market cap of $119.88 billion, a price-to-earnings ratio of 29.66, a P/E/G ratio of 2.71 and a beta of 0.82.

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

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be paid a dividend of $1.54 per share. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. Automatic Data Processing's dividend payout ratio (DPR) is currently 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.