QRG Capital Management Inc. Acquires 7,145 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• QRG Capital Management increased its ADP stake by 11.7% in the second quarter, purchasing 7,145 shares and bringing its total holdings to 68,115 shares worth approximately $15.3 million. Institutional investors own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. The company also declared a quarterly dividend of $1.70, equivalent to a 2.6% annual yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, while ADP insiders sold 33,773 shares worth about $9.45 million over the past 90 days.

QRG Capital Management Inc. lifted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 11.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 68,115 shares of the business services provider's stock after purchasing an additional 7,145 shares during the quarter. QRG Capital Management Inc.'s holdings in Automatic Data Processing were worth $15,254,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of the stock. Cornerstone Financial Management LLC bought a new position in Automatic Data Processing in the fourth quarter valued at $26,000. Bard Associates Inc. purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $28,000. Whipplewood Advisors LLC lifted its stake in Automatic Data Processing by 2,740.0% during the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after purchasing an additional 137 shares during the last quarter. Kelly Lawrence W & Associates Inc. CA bought a new stake in Automatic Data Processing during the second quarter worth about $34,000. Finally, HHM Wealth Advisors LLC boosted its holdings in shares of Automatic Data Processing by 42.4% in the 1st quarter. HHM Wealth Advisors LLC now owns 178 shares of the business services provider's stock worth $36,000 after purchasing an additional 53 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CEO Maria Black sold 29,810 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president directly owned 18,824 shares in the company, valued at $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,773 shares of company stock worth $9,450,629 over the last ninety days. 0.20% of the stock is owned by insiders.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $263.68 on Thursday. The company has a market capitalization of $104.75 billion, a P/E ratio of 24.10, a PEG ratio of 2.44 and a beta of 0.82. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $294.35. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a 50 day moving average price of $270.28 and a two-hundred day moving average price of $235.47.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results 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 firm had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. During the same quarter last year, the business earned $2.26 earnings per share. The business's revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts expect that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company 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. This represents a $6.80 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on ADP shares. UBS Group increased their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Guggenheim upped their target price on Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Morgan Stanley upped their target price on 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. BMO Capital Markets increased their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. Finally, TD Cowen lifted their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research note on Monday, July 6th. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $273.50.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc NASDAQ: ADP is a provider of human capital management (HCM) solutions and business outsourcing services. The company helps organizations manage payroll, employment taxes, human resources administration, employee benefits, workforce management, talent management, and compliance.

ADP offers cloud-based products for businesses of different sizes, including payroll and HR platforms, time and attendance tools, recruiting and talent solutions, benefits administration, and data and analytics services.

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