SCS Capital Management LLC Purchases New Shares in Automatic Data Processing, Inc. $ADP

Key Points

• SCS Capital Management LLC has acquired 9,236 shares of Automatic Data Processing, Inc. (NASDAQ: ADP), valued at approximately $2.83 million, according to their recent SEC filing.
• Insider trading activity includes VP Joseph Desilva selling 4,614 shares, which represents a 20.83% decrease in his holdings, while the company has seen insiders sell a total of 43,191 shares worth approximately $12.85 million over the last quarter.
• Automatic Data Processing has announced a quarterly dividend of $1.54 per share, with an ex-dividend date of September 12, 2023, representing an annualized yield of 2.1%.

SCS Capital Management LLC purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 9,236 shares of the business services provider's stock, valued at approximately $2,831,000.

A number of other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Automatic Data Processing by 0.5% during the first quarter. Vanguard Group Inc. now owns 40,949,884 shares of the business services provider's stock valued at $12,511,418,000 after acquiring an additional 218,614 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of Automatic Data Processing by 15.7% during the first quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after acquiring an additional 601,400 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Automatic Data Processing by 3.7% in the first quarter. Invesco Ltd. now owns 4,031,713 shares of the business services provider's stock valued at $1,231,809,000 after purchasing an additional 145,161 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Automatic Data Processing by 2.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,848,307 shares of the business services provider's stock valued at $1,175,773,000 after purchasing an additional 77,296 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Automatic Data Processing by 16.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,771,011 shares of the business services provider's stock valued at $1,103,888,000 after purchasing an additional 532,485 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, VP Michael A. Bonarti sold 8,728 shares of the company's stock in a transaction 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 in the company, valued at approximately $24,032,866.33. This represents a 9.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Maria Black sold 23,605 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the completion of the transaction, the chief executive officer owned 76,161 shares of the company's stock, valued at approximately $22,720,349.52. The trade was a 23.66% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 52,516 shares of company stock worth $15,632,410. 0.21% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Stifel Nicolaus lifted their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday, July 31st. Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a report on Thursday, June 5th. TD Securities lifted their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a report on Wednesday, May 21st. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Finally, BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a report on Thursday, July 10th. Two analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $317.00.

Automatic Data Processing Stock Down 1.5%

NASDAQ ADP traded down $4.53 on Friday, hitting $293.50. 1,100,046 shares of the stock were exchanged, compared to its average volume of 1,434,094. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a fifty-two week low of $272.18 and a fifty-two week high of $329.93. The company has a market cap of $118.88 billion, a PE ratio of 29.41, a PEG ratio of 2.73 and a beta of 0.82. The company has a 50-day moving average price of $303.00 and a 200-day moving average price of $304.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted 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. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the previous year, the business posted $2.09 EPS. The firm's revenue was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced 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 is presently 61.72%.

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.