Signal Tree Financial Partners LLC Invests $286,000 in Automatic Data Processing, Inc. $ADP

Key Points

• Signal Tree Financial Partners LLC has invested approximately $286,000 in Automatic Data Processing, Inc. during the 2nd quarter, acquiring 927 shares of the company's stock.
• Automatic Data Processing reported a 6.3% year-over-year increase in revenue, with $5.13 billion during its last quarterly earnings and earnings per share of $2.26, surpassing analysts' expectations.
• The company announced a quarterly dividend of $1.54 per share, representing an annual yield of 2.1%, with shares expected to pay out on October 1st.

Signal Tree Financial Partners LLC bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 927 shares of the business services provider's stock, valued at approximately $286,000.

Several other large investors have also made changes to their positions in the company. Bangor Savings Bank raised its position in shares of Automatic Data Processing by 0.7% in the 2nd quarter. Bangor Savings Bank now owns 4,907 shares of the business services provider's stock worth $1,513,000 after buying an additional 34 shares during the period. Syntegra Private Wealth Group LLC raised its position in shares of Automatic Data Processing by 4.7% in the 1st quarter. Syntegra Private Wealth Group LLC now owns 779 shares of the business services provider's stock worth $238,000 after buying an additional 35 shares during the period. Transamerica Financial Advisors LLC raised its position in shares of Automatic Data Processing by 1.0% in the 1st quarter. Transamerica Financial Advisors LLC now owns 3,371 shares of the business services provider's stock worth $1,030,000 after buying an additional 35 shares during the period. Ashton Thomas Securities LLC raised its position in shares of Automatic Data Processing by 4.1% in the 1st quarter. Ashton Thomas Securities LLC now owns 883 shares of the business services provider's stock worth $270,000 after buying an additional 35 shares during the period. Finally, CBIZ Investment Advisory Services LLC raised its position in shares of Automatic Data Processing by 36.1% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 132 shares of the business services provider's stock worth $41,000 after buying an additional 35 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Up 0.8%

NASDAQ:ADP opened at $291.50 on Thursday. The company has a market capitalization of $118.07 billion, a price-to-earnings ratio of 29.21, a price-to-earnings-growth ratio of 2.65 and a beta of 0.82. 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 $300.83 and a 200 day simple moving average of $303.54. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05.

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 analysts' consensus estimates of $2.23 by $0.03. The business had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The company's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period last year, the firm earned $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders 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 yield of 2.1%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is presently 61.72%.

Insider Buying and Selling

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, September 9th. The stock was 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 directly owned 80,531 shares in the company, valued at $24,032,866.33. The trade was a 9.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Don Mcguire sold 13,599 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value 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. The trade was a 43.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock valued at $15,632,410 over the last 90 days. 0.21% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several research firms have commented on ADP. UBS Group cut their price objective on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 17th. Stifel Nicolaus raised their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. Dbs Bank raised Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research report on Thursday, July 10th. Finally, Mizuho raised their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. Two investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, Automatic Data Processing currently has an average rating of "Hold" and an average price target of $316.70.

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.

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