Segall Bryant & Hamill LLC Takes $938,000 Position in Automatic Data Processing, Inc. $ADP

Key Points

• Segall Bryant & Hamill LLC acquired 4,405 ADP shares valued at approximately $938,000, while institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly earnings and revenue expectations, reporting $2.64 EPS and $5.47 billion in revenue, with revenue up 6.8% year over year.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to an annualized $6.80 payout and a 2.5% yield; analysts maintain a consensus “Hold” rating with a $273.50 target price.

Segall Bryant & Hamill LLC acquired a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 4,405 shares of the business services provider's stock, valued at approximately $938,000.

A number of other large investors have also recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its position in shares of Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after purchasing an additional 3,415,576 shares during the period. Cardano Risk Management B.V. boosted its position in Automatic Data Processing by 950.1% during the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after purchasing an additional 3,223,855 shares during the period. Norges Bank bought a new position in Automatic Data Processing during the 4th quarter worth $721,738,000. Clearbridge Investments LLC grew its stake in Automatic Data Processing by 133.3% during the 4th quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after buying an additional 964,405 shares during the last quarter. Finally, Amundi increased its position in Automatic Data Processing by 27.7% in the first quarter. Amundi now owns 3,034,002 shares of the business services provider's stock worth $616,449,000 after buying an additional 658,932 shares during the period. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $270.09 on Thursday. The stock has a fifty day moving average price of $238.87 and a two-hundred day moving average price of $224.57. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.04 and a current ratio of 1.05. The firm has a market cap of $107.96 billion, a P/E ratio of 24.69 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 posted its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts forecast that Automatic Data Processing, Inc. will post 12.3 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared 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 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio is 62.16%.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the sale, the vice president owned 9,660 shares in the company, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.20% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on ADP shares. Morgan Stanley raised their target price 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. Jefferies Financial Group lowered their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Guggenheim increased their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Finally, BMO Capital Markets upped their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research report on Wednesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $273.50.

Automatic Data Processing 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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