Plato Investment Management Ltd Makes New $5.28 Million Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Plato Investment Management bought 23,732 shares of Automatic Data Processing worth approximately $5.28 million during the second quarter. Institutional investors and hedge funds collectively own 80.03% of ADP.
• Analysts have an average “Hold” rating and a consensus price target of $273.50, with recent targets ranging from $240 to $310.
• ADP exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $5.47 billion in revenue, while announcing a quarterly dividend of $1.70 per share, equivalent to a 2.5% yield.

Plato Investment Management Ltd purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 23,732 shares of the business services provider's stock, valued at approximately $5,284,000.

Several other institutional investors and hedge funds also recently made changes to their positions in ADP. Imprint Wealth LLC bought a new stake in shares of Automatic Data Processing in the third quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new stake in Automatic Data Processing in the 4th quarter valued at approximately $26,000. Bard Associates Inc. bought a new stake in Automatic Data Processing in the 4th quarter valued at approximately $28,000. Whipplewood Advisors LLC lifted its stake in Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after acquiring an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new position in shares of Automatic Data Processing during the 4th quarter worth approximately $33,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Cantor Fitzgerald raised their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. 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 report on Wednesday, July 29th. Stifel Nicolaus increased their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Argus decreased their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Finally, Morgan Stanley boosted their price objective on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $273.50.

Automatic Data Processing Stock Performance

ADP 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. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $310.08. The business has a 50 day moving average of $245.08 and a 200-day moving average of $225.27. The stock has a market cap of $108.44 billion, a price-to-earnings ratio of 24.95 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 earnings per share 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 for the quarter, compared to analyst estimates of $5.44 billion. During the same period in the previous year, the firm earned $2.26 EPS. The firm's 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. On average, equities research analysts expect that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business 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 $1.70 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.5%. Automatic Data Processing's dividend payout ratio is presently 62.16%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the firm'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 completion of the sale, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. This trade represents a 19.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by insiders.

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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