Ransom Advisory Ltd Takes $625,000 Position in Automatic Data Processing, Inc. $ADP

Key Points

• Ransom Advisory Ltd acquired 2,046 shares of Automatic Data Processing, Inc. (NASDAQ: ADP), valued at around $625,000, highlighting ongoing interest from institutional investors.
• CEO Maria Black and VP Don Mcguire recently sold a combined total of 37,204 shares, indicating a significant decrease in their ownership percentages.
• The company has declared a quarterly dividend of $1.54, with a yield of 2.1%, demonstrating a commitment to returning value to shareholders.

Ransom Advisory Ltd acquired a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 2,046 shares of the business services provider's stock, valued at approximately $625,000.

Several other hedge funds also recently added to or reduced their stakes in the business. Sentinus LLC grew its position in Automatic Data Processing by 2.3% in the fourth 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 grew its position in Automatic Data Processing by 4.7% in the first 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. Transamerica Financial Advisors LLC grew its position in Automatic Data Processing by 1.0% in the first quarter. Transamerica Financial Advisors LLC now owns 3,371 shares of the business services provider's stock worth $1,030,000 after acquiring an additional 35 shares during the period. Ashton Thomas Securities LLC grew its position in Automatic Data Processing by 4.1% in the first quarter. Ashton Thomas Securities LLC now owns 883 shares of the business services provider's stock worth $270,000 after acquiring an additional 35 shares during the period. Finally, Detalus Advisors LLC grew its position in Automatic Data Processing by 2.4% in the first 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. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 0.5%

NASDAQ:ADP traded down $1.53 on Monday, reaching $291.97. The stock had a trading volume of 298,494 shares, compared to its average volume of 1,709,086. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. The company has a 50-day moving average of $303.00 and a 200 day moving average of $304.58. The stock has a market cap of $118.26 billion, a P/E ratio of 29.26, a price-to-earnings-growth ratio of 2.69 and a beta of 0.82. Automatic Data Processing, Inc. has a 12-month low of $272.18 and a 12-month high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, topping the consensus estimate of $2.23 by $0.03. The business had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company's quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter last year, the company posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, research analysts predict that Automatic Data Processing, Inc. will post 9.93 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 Wednesday, October 1st. Stockholders of record on Friday, September 12th will be issued a $1.54 dividend. The ex-dividend date is Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. Automatic Data Processing's dividend payout ratio (DPR) is 61.72%.

Analyst Ratings Changes

Several research firms have recently commented on ADP. Royal Bank Of Canada restated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Stifel Nicolaus raised their price target on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a report on Thursday, July 10th. Finally, Mizuho lifted their target price on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. Two equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Automatic Data Processing presently has an average rating of "Hold" and an average target price of $317.00.

Insiders Place Their Bets

In related news, VP Michael A. Bonarti sold 8,728 shares of the firm's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the completion of the transaction, the vice president owned 80,531 shares of the company's stock, valued at approximately $24,032,866.33. This trade represents a 9.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP David Foskett sold 1,373 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $407,190.61. Following the completion of the sale, the vice president owned 11,781 shares of the company's stock, valued at approximately $3,493,891.17. The trade was a 10.44% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 52,516 shares of company stock valued at $15,632,410. 0.21% of the stock is currently owned by insiders.

Automatic Data Processing 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.