Peachtree Investment Partners LLC Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Peachtree Investment Partners acquired 9,869 ADP shares worth approximately $2.21 million, making the stock about 0.7% of its portfolio. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations with earnings of $2.64 per share versus the $2.59 consensus and revenue of $5.47 billion, up 6.8% year over year. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.
• ADP declared a quarterly dividend of $1.70, equivalent to $6.80 annually and a 2.5% yield, with payment scheduled for October 1 to shareholders of record as of September 11.

Peachtree Investment Partners LLC acquired a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 9,869 shares of the business services provider's stock, valued at approximately $2,210,000. Automatic Data Processing makes up about 0.7% of Peachtree Investment Partners LLC's portfolio, making the stock its 25th largest position.

A number of other hedge funds and other institutional investors have also recently modified their holdings of ADP. Brighton Jones LLC increased its holdings in shares of Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock worth $2,935,000 after buying an additional 4,808 shares during the last quarter. Bison Wealth LLC grew its position in Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after acquiring an additional 681 shares in the last quarter. Schnieders Capital Management LLC. grew its position in Automatic Data Processing by 21.8% in the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after acquiring an additional 225 shares in the last quarter. Osterweis Capital Management Inc. bought a new stake in Automatic Data Processing during the second quarter worth approximately $108,000. Finally, Diversify Advisory Services LLC raised its position in Automatic Data Processing by 17.5% during the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after purchasing an additional 815 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $272.96 on Monday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock's fifty day moving average is $245.08 and its two-hundred day moving average is $225.27. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $310.08. The company has a market capitalization of $108.44 billion, a PE ratio of 24.95 and a beta of 0.81.

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

Automatic Data Processing Announces Dividend

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

Analyst Upgrades and Downgrades

ADP has been the subject of a number of recent research reports. Jefferies Financial Group dropped their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. BMO Capital Markets lifted 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. Argus reduced their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. Cantor Fitzgerald raised their price objective on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research note on Monday, August 3rd. Finally, Robert W. Baird dropped their target price on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $273.50.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the company's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by company insiders.

Automatic Data Processing Company 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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