Simplicity Wealth LLC Invests $1.84 Million in Automatic Data Processing, Inc. $ADP

Key Points

• Simplicity Wealth LLC acquired 8,206 ADP shares worth approximately $1.84 million, while institutional investors collectively own 80.03% of the company.
• ADP reported quarterly EPS of $2.64, beating estimates by $0.05, and revenue of $5.47 billion, up 6.8% year over year. The company maintained fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70, equivalent to $6.80 annually and a 2.5% yield. Analysts have a consensus “Hold” rating with an average price target of $273.50.

Simplicity Wealth LLC acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 8,206 shares of the business services provider's stock, valued at approximately $1,838,000.

Several other institutional investors have also recently made changes to their positions in the stock. Imprint Wealth LLC acquired a new position in Automatic Data Processing during the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Automatic Data Processing during the fourth quarter worth approximately $26,000. Bard Associates Inc. bought a new position in shares of Automatic Data Processing in the fourth quarter valued at $28,000. Whipplewood Advisors LLC lifted its stake in shares of Automatic Data Processing by 2,740.0% in the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after buying an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new position in Automatic Data Processing in the 4th quarter valued at about $33,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $272.96 on Monday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market capitalization of $108.44 billion, a PE ratio of 24.95 and a beta of 0.81. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $310.08. The business's fifty day moving average price is $245.08 and its 200-day moving average price is $225.27.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its 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. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter in the prior year, the business posted $2.26 earnings per share. The business's quarterly 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. On average, equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed 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 is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is 62.16%.

Insiders Place Their Bets

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

Analysts Set New Price Targets

Several brokerages recently issued reports on ADP. TD Cowen lifted their target price on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. Mizuho cut their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Jefferies Financial Group reduced their price objective on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. BMO Capital Markets lifted 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. Finally, UBS Group upped their target price on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target 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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