Price T Rowe Associates Inc. MD Sells 64,029 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Price T Rowe Associates Inc. MD has reduced its stake in Automatic Data Processing, Inc. by 4.6%, now holding 1,325,371 shares valued at approximately $404.94 million.
• Automatic Data Processing reported quarterly earnings of $2.26 EPS, exceeding analyst expectations and showing a revenue increase of 6.3% year-over-year, amounting to $5.13 billion.
• The company announced a quarterly dividend of $1.54 per share, yielding 2.0%, with a payout ratio of 61.72%, to be distributed on October 1st.

Price T Rowe Associates Inc. MD reduced its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 4.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,325,371 shares of the business services provider's stock after selling 64,029 shares during the quarter. Price T Rowe Associates Inc. MD owned about 0.33% of Automatic Data Processing worth $404,941,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in ADP. Sentinus LLC lifted its position in shares of Automatic Data Processing by 2.3% in the 4th quarter. Sentinus LLC now owns 1,548 shares of the business services provider's stock worth $453,000 after acquiring an additional 35 shares during the period. Syntegra Private Wealth Group LLC lifted its position in shares of Automatic Data Processing by 4.7% in the 1st quarter. Syntegra Private Wealth Group LLC now owns 779 shares of the business services provider's stock worth $238,000 after acquiring an additional 35 shares during the period. Rehmann Capital Advisory Group lifted its position in shares of Automatic Data Processing by 1.0% in the 4th quarter. Rehmann Capital Advisory Group now owns 3,686 shares of the business services provider's stock worth $1,079,000 after acquiring an additional 36 shares during the period. Detalus Advisors LLC lifted its position in shares of Automatic Data Processing by 2.4% in the 1st quarter. Detalus Advisors LLC now owns 1,566 shares of the business services provider's stock worth $478,000 after acquiring an additional 37 shares during the period. Finally, Main Street Group LTD lifted its position in shares of Automatic Data Processing by 50.7% in the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after acquiring an additional 38 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

ADP has been the subject of a number of research reports. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Stifel Nicolaus increased their target price on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a report on Thursday, July 10th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $315.00 target price on shares of Automatic Data Processing in a report on Thursday, June 5th. Finally, UBS Group dropped their target price on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a report on Friday, June 13th. Two equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $317.00.

Automatic Data Processing Price Performance

ADP stock traded down $0.36 during midday trading on Wednesday, reaching $303.09. 1,075,308 shares of the company's stock traded hands, compared to its average volume of 1,724,115. The company has a 50-day simple moving average of $304.94 and a two-hundred day simple moving average of $305.58. Automatic Data Processing, Inc. has a 1-year low of $267.79 and a 1-year high of $329.93. The company has a market cap of $122.76 billion, a price-to-earnings ratio of 30.37, a PEG ratio of 2.78 and a beta of 0.81. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The firm had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same period last year, the firm posted $2.09 EPS. The business's revenue was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be issued a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.