Sheets Smith Investment Management Sells 1,194 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Sheets Smith Investment Management reduced its stake in Automatic Data Processing, Inc. by 27.4%, selling 1,194 shares and retaining 3,158 shares worth $965,000.
• Automatic Data Processing reported earnings of $2.26 per share, surpassing analyst expectations of $2.23, with a revenue of $5.13 billion for the quarter.
• The company declared a quarterly dividend of $1.54 per share, translating to a 2.1% yield, with a payout ratio of 61.72%.

Sheets Smith Investment Management lowered its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 27.4% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 3,158 shares of the business services provider's stock after selling 1,194 shares during the period. Sheets Smith Investment Management's holdings in Automatic Data Processing were worth $965,000 at the end of the most recent quarter.

Other institutional investors have also recently bought and sold shares of the company. Activest Wealth Management boosted its holdings 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 valued at $25,000 after purchasing an additional 78 shares during the period. Clarity Asset Management Inc. bought a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $29,000. von Borstel & Associates Inc. bought a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $30,000. Y.D. More Investments Ltd bought a new stake in shares of Automatic Data Processing during the 1st quarter worth approximately $35,000. Finally, Abound Wealth Management lifted its holdings in shares of 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 period. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Up 1.9%

ADP stock opened at $298.03 on Friday. The stock has a market capitalization of $120.71 billion, a P/E ratio of 29.86, a price-to-earnings-growth ratio of 2.68 and a beta of 0.82. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a 12 month low of $272.18 and a 12 month high of $329.93. The firm has a 50-day moving average price of $303.31 and a 200-day moving average price of $304.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.03. The company had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The business's quarterly revenue was up 6.3% compared to the same quarter last year. During the same period in the previous year, the business posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, CEO Maria Black sold 23,605 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $298.32, for a total value of $7,041,843.60. Following the completion of the transaction, the chief executive officer directly owned 76,161 shares in the company, valued at approximately $22,720,349.52. This represents a 23.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Don Mcguire sold 13,599 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following the completion of the transaction, the vice president owned 17,684 shares of the company's stock, valued at approximately $5,244,543.88. This trade represents a 43.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 52,516 shares of company stock worth $15,632,410. 0.21% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. TD Securities upped their price target on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Mizuho upped their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a report on Thursday, June 5th. Finally, Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $317.00.

About Automatic Data Processing

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.

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