Saudi Central Bank Acquires 13,256 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Saudi Central Bank increased its ADP stake by 88.8% in the second quarter, purchasing 13,256 additional shares and bringing its holdings to 28,185 shares valued at approximately $6.3 million. Institutional investors own about 80% of ADP’s outstanding stock.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year. The company provided fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Saudi Central Bank increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 88.8% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 28,185 shares of the business services provider's stock after buying an additional 13,256 shares during the quarter. Saudi Central Bank's holdings in Automatic Data Processing were worth $6,312,000 at the end of the most recent reporting period.

Other large investors also recently added to or reduced their stakes in the company. Imprint Wealth LLC bought a new position in Automatic Data Processing in the third quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Automatic Data Processing during the 4th quarter valued at $26,000. Bard Associates Inc. bought a new stake in shares of Automatic Data Processing during the 4th quarter valued at $28,000. Whipplewood Advisors LLC increased its stake in shares of Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after purchasing an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc purchased a new stake in shares of Automatic Data Processing in the 4th quarter worth $33,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Down 2.1%

Shares of ADP stock opened at $277.62 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $302.68. The company's fifty day moving average price is $262.37 and its 200-day moving average price is $230.21. The company has a market capitalization of $110.29 billion, a price-to-earnings ratio of 25.38, a PEG ratio of 2.52 and a beta of 0.82.

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 for the quarter, topping the consensus estimate of $2.59 by $0.05. The company had revenue of $5.47 billion during 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%. Automatic Data Processing's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be given a dividend of $1.70 per share. The ex-dividend date 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 (DPR) is currently 62.16%.

Analyst Upgrades and Downgrades

ADP has been the topic of several analyst reports. Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 21st. Morgan Stanley upped their price target on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Citigroup raised their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. BMO Capital Markets lifted their price objective on 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, Guggenheim boosted their price objective on Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing News Summary

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a yield of approximately 2.4%. The payment reinforces the company’s appeal to income-focused investors and its long record of annual dividend increases. Dividend announcement article
• Neutral Sentiment: ADP’s August employment report showed private-sector payrolls increased by 38,000, while base pay rose 3.2% and gross pay grew 4.7%. The data highlights ADP’s influence as a labor-market information provider, but also points to a moderating hiring environment. ADP August employment report
• Neutral Sentiment: One valuation analysis described ADP as roughly 1% undervalued based on recent labor-market data, while noting that the stock has underperformed the broader technology sector. The limited valuation discount suggests investors may need stronger earnings growth to drive further upside. ADP valuation analysis
• Negative Sentiment: A Seeking Alpha analysis downgraded ADP, arguing that recent operating and market tailwinds are already reflected in the share price. The view adds valuation pressure as ADP trades at a relatively elevated earnings multiple. ADP downgrade analysis
• Negative Sentiment: CEO Maria Black sold 29,810 shares worth about $8.4 million, reducing her direct ownership by roughly 27%. Vice President Joseph Desilva separately sold 631 shares for approximately $178,000. Both transactions were executed under pre-arranged Rule 10b5-1 plans, making them less significant as discretionary bearish signals, though the sales may still weigh on sentiment. ADP insider sales
• Negative Sentiment: August private payroll growth of 38,000 missed the 47,000 forecast and slowed from 44,000 in July. A weaker hiring backdrop could reduce growth in payroll-processing volumes, although lower employment growth may increase expectations for easier Federal Reserve policy. ADP private payrolls report

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Kwon sold 798 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the transaction, the vice president directly owned 13,193 shares in the company, valued at $3,694,040. This represents a 5.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the sale, the vice president directly owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. 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 sold a total of 33,773 shares of company stock worth $9,450,629 over the last quarter. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source