Paralel Advisors LLC Takes $2.55 Million Position in Automatic Data Processing, Inc. $ADP

Key Points

• Paralel Advisors initiated a $2.55 million position in Automatic Data Processing during the second quarter by purchasing 11,374 shares. Institutional investors collectively own approximately 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year. Analysts maintain a consensus “Hold” rating and an average price target of $273.50.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.4% yield; the dividend is payable October 1 to shareholders of record on September 11.

Paralel Advisors LLC purchased a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 11,374 shares of the business services provider's stock, valued at approximately $2,547,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Imprint Wealth LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new stake in Automatic Data Processing in the fourth quarter worth $26,000. Bard Associates Inc. bought a new stake in Automatic Data Processing in the fourth quarter worth $28,000. Whipplewood Advisors LLC grew its stake in shares of Automatic Data Processing by 2,740.0% in the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after acquiring an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth $33,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the business's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their position. The sale 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.

Analyst Upgrades and Downgrades

ADP has been the subject of several analyst reports. Wells Fargo & Company raised their price target on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. BMO Capital Markets upped their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 21st. TD Cowen raised their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research note on Monday, July 6th. Finally, Guggenheim lifted their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Stock Performance

Shares of ADP opened at $279.21 on Friday. The business's fifty day simple moving average is $248.57 and its two-hundred day simple moving average is $225.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $308.99. The company has a market cap of $110.92 billion, a price-to-earnings ratio of 25.52 and a beta of 0.81.

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

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 2.4%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is presently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source