North Star Asset Management Inc. Acquires New Position in Automatic Data Processing, Inc. $ADP

Key Points

• North Star Asset Management acquired 5,458 ADP shares worth approximately $1.22 million in the second quarter. Institutional investors collectively own 80.03% of the company.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, despite several firms recently raising their targets.
• ADP exceeded quarterly earnings and revenue estimates, reporting $2.64 in EPS and $5.47 billion in revenue, while declaring a quarterly dividend of $1.70 per share, equivalent to a 2.4% yield.

North Star Asset Management Inc. acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 5,458 shares of the business services provider's stock, valued at approximately $1,222,000.

A number of other large investors also recently bought and sold shares of ADP. BlackRock Inc. acquired a new stake in shares of Automatic Data Processing during the 2nd quarter valued at approximately $8,097,229,000. State Street Corp lifted its stake in Automatic Data Processing by 0.7% during the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock worth $4,903,769,000 after purchasing an additional 133,039 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Automatic Data Processing by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock worth $2,977,777,000 after purchasing an additional 136,876 shares during the period. Capital Research Global Investors boosted its holdings in Automatic Data Processing by 4.6% in the fourth quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock worth $2,159,088,000 after purchasing an additional 372,413 shares during the period. Finally, Wellington Management Group LLP increased its stake in Automatic Data Processing by 8.0% during the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider's stock valued at $1,896,944,000 after purchasing an additional 544,210 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ADP. Cantor Fitzgerald increased their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a report on Monday, August 3rd. 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 report on Wednesday, July 22nd. Wells Fargo & Company boosted their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Guggenheim increased their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Finally, BMO Capital Markets raised their target price 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. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Automatic Data Processing presently has an average rating of "Hold" and a consensus target price of $273.50.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the business's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the transaction, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the transaction, the vice president directly owned 18,442 shares of the company's stock, valued at $5,158,227.40. This represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 3,332 shares of company stock valued at $898,211. Insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $287.48 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a market capitalization of $114.20 billion, a PE ratio of 26.28 and a beta of 0.81. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $305.31. The business's fifty day moving average price is $256.03 and its two-hundred day moving average price is $227.97.

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

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's payout ratio is presently 62.16%.

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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