Sax Wealth Advisors LLC Purchases 4,766 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Sax Wealth Advisors increased its ADP stake by 368.9% in the second quarter, purchasing 4,766 additional shares and bringing its holdings to 6,058 shares valued at approximately $1.36 million. Institutional investors own 80.03% of the company.
• Analysts maintain a largely cautious outlook, with a consensus “Hold” rating and an average price target of $273.50. Ratings include three Buys, nine Holds, and one Sell.
• ADP exceeded quarterly expectations with $2.64 in EPS and $5.47 billion in revenue, while revenue rose 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, representing a 2.5% annualized yield.

Sax Wealth Advisors LLC lifted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 368.9% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 6,058 shares of the business services provider's stock after purchasing an additional 4,766 shares during the period. Sax Wealth Advisors LLC's holdings in Automatic Data Processing were worth $1,357,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the business. Imprint Wealth LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new stake in Automatic Data Processing in the 4th quarter worth approximately $26,000. Bard Associates Inc. bought a new stake in shares of Automatic Data Processing in the 4th quarter worth approximately $28,000. Whipplewood Advisors LLC grew its position 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 buying an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc purchased a new position in shares of Automatic Data Processing during the fourth quarter valued at approximately $33,000. 80.03% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on ADP shares. Citigroup upped their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Robert W. Baird cut their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Mizuho decreased their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Jefferies Financial Group decreased their price objective on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Finally, TD Cowen raised their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research report on Monday, July 6th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $273.50.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the sale, the vice president directly owned 9,660 shares of the company's stock, valued at $2,565,889.20. The trade was a 19.99% decrease in their position. The sale 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. 0.20% of the stock is currently owned by corporate insiders.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $271.32 on Monday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. The firm's 50-day moving average price is $240.93 and its 200-day moving average price is $224.74. The company has a market capitalization of $107.78 billion, a PE ratio of 24.80 and a beta of 0.81. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $310.08.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $5.44 billion. During the same period last year, the company posted $2.26 EPS. Automatic Data Processing'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. On average, equities analysts predict 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. Stockholders of record on Friday, September 11th will be issued a dividend of $1.70 per share. 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 (DPR) is presently 62.16%.

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.

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