Reynders McVeigh Capital Management LLC Trims Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Reynders McVeigh Capital Management cut its ADP stake by 18.4% in the second quarter, selling 12,978 shares and retaining 57,695 shares valued at approximately $12.9 million. Institutional investors collectively own 80.03% of the company.
• ADP insiders sold 33,773 shares worth about $9.45 million over the past three months, including CEO Maria Black’s sale of 29,810 shares under a pre-arranged Rule 10b5-1 plan.
• Analysts maintain a consensus “Hold” rating with a $273.50 price target, while ADP recently exceeded quarterly earnings and revenue estimates and announced a $1.70 quarterly dividend, yielding about 2.5% annually.

Reynders McVeigh Capital Management LLC cut its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 18.4% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 57,695 shares of the business services provider's stock after selling 12,978 shares during the quarter. Reynders McVeigh Capital Management LLC's holdings in Automatic Data Processing were worth $12,921,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Automatic Data Processing in the second quarter valued at approximately $8,097,229,000. State Street Corp boosted its holdings in shares of Automatic Data Processing by 0.7% in the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock valued at $4,903,769,000 after acquiring an additional 133,039 shares during the period. Geode Capital Management LLC grew its position in shares of Automatic Data Processing by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock worth $2,977,777,000 after acquiring an additional 136,876 shares during the last quarter. Capital Research Global Investors grew its position in shares of Automatic Data Processing by 4.6% during the fourth quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock worth $2,159,088,000 after acquiring an additional 372,413 shares during the last quarter. Finally, Bank of America Corp DE acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $1,231,175,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Insider Buying and Selling

In related news, CEO Maria Black sold 29,810 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the sale, the chief executive officer owned 80,624 shares of the company's stock, valued at $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total transaction of $178,490.97. Following the completion of the transaction, the vice president directly owned 18,824 shares of the company's stock, valued at $5,324,744.88. The trade was a 3.24% 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 33,773 shares of company stock valued at $9,450,629 over the last three months. Insiders own 0.20% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ADP shares. Wells Fargo & Company increased their price target on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Morgan Stanley upped their target price on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. UBS Group increased their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Finally, TD Cowen raised their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Price Performance

NASDAQ ADP traded down $0.10 during trading hours on Tuesday, reaching $276.53. The company's stock had a trading volume of 2,208,735 shares, compared to its average volume of 2,969,342. 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 company's 50-day moving average is $266.66 and its two-hundred day moving average is $232.81. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $294.46. The stock has a market cap of $109.85 billion, a PE ratio of 25.28, a PEG ratio of 2.43 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts forecast that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

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

About Automatic Data Processing

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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