SCS Capital Management LLC Makes New $1.44 Million Investment in Automatic Data Processing, Inc. $ADP

Key Points

• SCS Capital Management initiated a $1.44 million position in Automatic Data Processing during the second quarter by purchasing 6,388 shares. Institutional investors collectively own approximately 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. Analysts expect full-year EPS of approximately $12.26.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to an annualized $6.80 payout and a 2.5% yield. Analyst sentiment remains mostly neutral, with a consensus “Hold” rating and a $273.50 price target.

SCS Capital Management LLC bought a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 6,388 shares of the business services provider's stock, valued at approximately $1,438,000.

Several other hedge funds also recently modified their holdings of the business. Bank of New York Mellon Corp acquired a new position in Automatic Data Processing in the second quarter valued at approximately $725,513,000. Centric Wealth Management acquired a new stake in Automatic Data Processing during the 2nd quarter worth $2,658,000. Private Advisory Group LLC acquired a new stake in Automatic Data Processing during the 2nd quarter worth $279,000. Focus Partners Advisor Solutions LLC bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $2,274,000. Finally, ABN AMRO Bank N.V. bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $437,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

ADP opened at $272.96 on Monday. The firm's fifty day moving average is $245.08 and its two-hundred day moving average is $225.27. The firm has a market cap of $108.44 billion, a PE ratio of 24.95 and a beta of 0.81. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $310.08. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

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. 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 analyst estimates of $5.44 billion. During the same quarter in the previous year, the business earned $2.26 EPS. The firm'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. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be issued a dividend of $1.70 per share. The ex-dividend date is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.5%. Automatic Data Processing's payout ratio is currently 62.16%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the business's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the transaction, the vice president directly owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on ADP shares. Morgan Stanley increased their price target on Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Citigroup upped their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Argus cut their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Jefferies Financial Group reduced their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Finally, Stifel Nicolaus boosted their target price on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $273.50.

About Automatic Data Processing

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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