Oxbow Advisors LLC Invests $1.30 Million in Automatic Data Processing, Inc. $ADP

Key Points

• Oxbow Advisors acquired 5,817 shares of Automatic Data Processing worth approximately $1.30 million in the second quarter. Institutional investors and hedge funds own 80.03% of ADP’s outstanding shares.
• ADP exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. Analysts maintain an average “Hold” rating and a consensus price target of $273.50.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.5% yield, payable October 1 to shareholders of record on September 11.

Oxbow Advisors LLC purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 5,817 shares of the business services provider's stock, valued at approximately $1,303,000.

Other hedge funds have also modified their holdings of the company. Wealthfront Advisers LLC acquired a new stake in Automatic Data Processing in the second quarter worth $16,685,000. Foster & Motley Inc. bought a new position in shares of Automatic Data Processing during the second quarter worth $909,000. Strategic Wealth Advisors LLC acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $131,000. Main Street Financial Solutions LLC grew its holdings in shares of Automatic Data Processing by 40.7% in the 2nd quarter. Main Street Financial Solutions LLC now owns 4,622 shares of the business services provider's stock valued at $1,035,000 after buying an additional 1,338 shares during the period. Finally, First National Bank of Omaha bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $2,536,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Citigroup raised their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Morgan Stanley boosted their target price on Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. Guggenheim raised their price target on Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Robert W. Baird dropped their price target on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average price target of $273.50.

Insider Activity

In related news, VP David Kwon sold 2,414 shares of the stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president directly owned 9,660 shares in the company, valued at approximately $2,565,889.20. This trade represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company's stock.

Automatic Data Processing Trading Up 1.2%

Shares of NASDAQ:ADP opened at $269.31 on Wednesday. The firm has a market cap of $106.99 billion, a price-to-earnings ratio of 24.62 and a beta of 0.81. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.08. The company's fifty day simple moving average is $246.58 and its 200 day simple moving average is $225.48. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping analysts' consensus estimates 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 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 period in the prior year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, research analysts forecast that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Automatic Data Processing Profile

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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