Nykredit A S Acquires Shares of 165,295 Automatic Data Processing, Inc. $ADP

Key Points

• Nykredit A/S acquired 165,295 shares of Automatic Data Processing in the second quarter, valued at approximately $37.0 million. Institutional investors own about 80.03% of ADP’s outstanding stock.
• ADP exceeded quarterly earnings expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, equivalent to a 2.5% annualized yield.
• Analysts maintain a consensus “Hold” rating with a $273.50 price target, while company insiders sold approximately $9.45 million of stock over the past three months.

Nykredit A S bought a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 165,295 shares of the business services provider's stock, valued at approximately $37,018,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Compass Capital Management Inc. lifted its position in shares of Automatic Data Processing by 3.0% during the fourth quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider's stock worth $52,400,000 after acquiring an additional 5,899 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Automatic Data Processing in the second quarter valued at $13,283,000. Royal Capital Wealth Management LLC bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $1,226,000. Canada Pension Plan Investment Board purchased a new stake in Automatic Data Processing during the 2nd quarter worth about $152,706,000. Finally, Fulton Bank N.A. boosted its stake in Automatic Data Processing by 192.0% in the 2nd quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider's stock worth $1,605,000 after purchasing an additional 4,711 shares during the period. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $271.22 on Friday. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $294.46. The company has a fifty day moving average of $269.12 and a 200-day moving average of $234.30. The company has a market capitalization of $107.74 billion, a P/E ratio of 24.79, a P/E/G ratio of 2.47 and a beta of 0.82. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company's revenue 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. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 631 shares of the company's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total transaction of $178,490.97. Following the completion of the sale, the vice president directly owned 18,824 shares in the company, valued at $5,324,744.88. This represents a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the transaction, the chief executive officer directly owned 80,624 shares in the company, valued at $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. 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 three months, insiders sold 33,773 shares of company stock valued at $9,450,629. 0.20% of the stock is owned by insiders.

Analyst Ratings Changes

ADP has been the topic of several analyst reports. Cantor Fitzgerald upped their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Guggenheim increased their target price 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. Morgan Stanley raised their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. TD Cowen upped their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a report on Monday, July 6th. Finally, Stifel Nicolaus increased their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing 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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