Automatic Data Processing, Inc. $ADP Stake Lessened by Seilern Investment Management Ltd

Key Points

• Seilern Investment Management Ltd reduced its position in Automatic Data Processing, Inc. (ADP) by 17.7%, selling 7,282 shares and now owning 33,849 shares valued at approximately $10.4 million.
• Automatic Data Processing reported a quarterly EPS of $2.26, exceeding estimates, with a revenue of $5.13 billion, up 6.3% from the previous year.
• The company announced a quarterly dividend of $1.54 per share, with a dividend yield of 2.1%, set to be paid on October 1st to stockholders of record.

Seilern Investment Management Ltd reduced its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 17.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 33,849 shares of the business services provider's stock after selling 7,282 shares during the period. Automatic Data Processing accounts for about 0.7% of Seilern Investment Management Ltd's portfolio, making the stock its 17th largest holding. Seilern Investment Management Ltd's holdings in Automatic Data Processing were worth $10,439,000 at the end of the most recent reporting period.

Several other large investors have also recently bought and sold shares of ADP. Activest Wealth Management grew its stake in Automatic Data Processing by 2,600.0% in the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after acquiring an additional 78 shares during the period. Clarity Asset Management Inc. bought a new stake in Automatic Data Processing in the first quarter valued at approximately $29,000. von Borstel & Associates Inc. bought a new stake in Automatic Data Processing during the first quarter worth $30,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing in the 1st quarter valued at approximately $35,000. Finally, Abound Wealth Management boosted its holdings in Automatic Data Processing by 58.1% during the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after acquiring an additional 43 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

ADP stock traded up $1.29 during trading hours on Friday, hitting $292.24. 1,105,187 shares of the stock traded hands, compared to its average volume of 1,722,028. Automatic Data Processing, Inc. has a one year low of $272.18 and a one year high of $329.93. The stock has a 50-day simple moving average of $301.59 and a 200 day simple moving average of $304.00. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. The company has a market cap of $118.37 billion, a P/E ratio of 29.26, a P/E/G ratio of 2.64 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The company had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same quarter in the previous year, the firm earned $2.09 earnings per share. The business'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. Equities analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be paid a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is presently 61.72%.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on ADP shares. Mizuho raised their price target on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. Stifel Nicolaus boosted their price target on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Royal Bank Of Canada reissued a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Finally, UBS Group lowered their target price on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a report on Wednesday. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $314.73.

Insiders Place Their Bets

In related news, CEO Maria Black sold 23,605 shares of the stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $298.32, for a total value of $7,041,843.60. Following the transaction, the chief executive officer owned 76,161 shares of the company's stock, valued at $22,720,349.52. This represents a 23.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the completion of the sale, the vice president owned 17,536 shares of the company's stock, valued at $5,200,651.52. This trade represents a 20.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 52,516 shares of company stock valued at $15,632,410 in the last quarter. 0.21% of the stock is currently owned by company insiders.

Automatic Data Processing Company 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.