Ninety One UK Ltd Acquires 131,049 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Ninety One UK Ltd acquired an additional 131,049 shares of Automatic Data Processing, Inc. during Q2, increasing its total holdings to 2,402,723 shares, which now represent about 1.7% of the firm’s portfolio.
• Institutional investors collectively own 80.03% of ADP's stock, with notable transactions including Nuveen LLC and Ameriprise Financial Inc. significantly increasing their positions in the first quarter.
• ADP has a consensus rating of "Hold" with a target price of $316.70, while analysts predict earnings per share (EPS) of 9.93 for the current fiscal year.

Ninety One UK Ltd increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 5.8% in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor owned 2,402,723 shares of the business services provider's stock after buying an additional 131,049 shares during the quarter. Automatic Data Processing comprises approximately 1.7% of Ninety One UK Ltd's portfolio, making the stock its 15th biggest position. Ninety One UK Ltd owned about 0.59% of Automatic Data Processing worth $741,000,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of ADP. Nuveen LLC purchased a new stake in Automatic Data Processing during the first quarter valued at $661,771,000. Mackenzie Financial Corp increased its position in Automatic Data Processing by 128.1% during the first 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 during the last quarter. Ameriprise Financial Inc. increased its position in Automatic Data Processing by 15.7% during the first 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 during the last quarter. SG Americas Securities LLC increased its position in Automatic Data Processing by 811.7% during the first 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 during the last quarter. Finally, Goldman Sachs Group Inc. increased its position in Automatic Data Processing by 22.6% during the first 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 during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ADP. UBS Group reduced their price objective on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday, September 17th. Morgan Stanley upped their price target on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. Stifel Nicolaus upped 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 for the company in a research report on Thursday, July 10th. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Two investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and a consensus target price of $316.70.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $293.50 on Wednesday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a 12-month low of $272.62 and a 12-month high of $329.93. The stock has a 50-day moving average price of $300.01 and a 200 day moving average price of $303.53. The stock has a market capitalization of $118.89 billion, a P/E ratio of 29.41, a P/E/G ratio of 2.68 and a beta of 0.82.

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

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be issued a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 4,614 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 transaction of $1,368,373.98. Following the completion of the transaction, the vice president owned 17,536 shares in the company, valued at $5,200,651.52. This trade represents a 20.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Michael A. Bonarti sold 8,728 shares of the firm's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the transaction, the vice president owned 80,531 shares of the company's stock, valued at $24,032,866.33. This represents a 9.78% 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 three months. 0.20% of the stock is owned by company insiders.

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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