Public Employees Retirement System of Ohio Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Public Employees Retirement System of Ohio purchased 153,102 ADP shares during the second quarter, valued at approximately $34.3 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS versus the $2.59 consensus and $5.47 billion in revenue, up 6.8% year over year. The company also issued fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70, equivalent to $6.80 annually and a 2.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50, below the reported $287.48 share price.

Public Employees Retirement System of Ohio purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The fund purchased 153,102 shares of the business services provider's stock, valued at approximately $34,287,000.

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

Insiders Place Their Bets

In related news, VP David Kwon sold 798 shares of Automatic Data Processing stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the transaction, the vice president owned 13,193 shares of the company's stock, valued at approximately $3,694,040. This trade represents a 5.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the sale, the vice president owned 18,442 shares in the company, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,332 shares of company stock valued at $898,211 in the last quarter. Insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $287.48 on Friday. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $305.31. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The firm has a 50-day moving average of $256.03 and a two-hundred day moving average of $227.97. The company has a market capitalization of $114.20 billion, a price-to-earnings ratio of 26.28 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. During the same quarter in the previous year, the company posted $2.26 EPS. The business'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. As a group, analysts expect that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be issued 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 2.4%. Automatic Data Processing's dividend payout ratio is currently 62.16%.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. TD Cowen increased their price target on Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research note on Monday, July 6th. Stifel Nicolaus upped their price objective on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. UBS Group increased their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. BMO Capital Markets raised their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. Finally, Argus dropped their price target 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. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $273.50.

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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