Somerville Kurt F Cuts Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Somerville Kurt F reduced its stake in Automatic Data Processing, Inc. by 3.3% during the second quarter, owning 74,400 shares valued at approximately $22.9 million.
• Automatic Data Processing recently announced a quarterly dividend of $1.54 per share, yielding 2.1% annually, with a payout ratio of 61.72%.
• The stock has a market capitalization of $118.67 billion and reported earnings of $2.26 per share for the last quarter, exceeding analysts' expectations.

Somerville Kurt F decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.3% during the second quarter, according to the company in its most recent disclosure with the SEC. The fund owned 74,400 shares of the business services provider's stock after selling 2,536 shares during the quarter. Automatic Data Processing accounts for about 3.9% of Somerville Kurt F's investment portfolio, making the stock its 6th biggest position. Somerville Kurt F's holdings in Automatic Data Processing were worth $22,945,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the company. Bangor Savings Bank grew its stake in Automatic Data Processing by 0.7% in the second quarter. Bangor Savings Bank now owns 4,907 shares of the business services provider's stock worth $1,513,000 after purchasing an additional 34 shares in the last quarter. Ameritas Advisory Services LLC grew its stake in Automatic Data Processing by 2.1% in the second quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider's stock worth $502,000 after purchasing an additional 34 shares in the last quarter. Syntegra Private Wealth Group LLC grew its stake in Automatic Data Processing by 4.7% in the first quarter. Syntegra Private Wealth Group LLC now owns 779 shares of the business services provider's stock worth $238,000 after purchasing an additional 35 shares in the last quarter. Transamerica Financial Advisors LLC grew its stake in Automatic Data Processing by 1.0% in the first quarter. Transamerica Financial Advisors LLC now owns 3,371 shares of the business services provider's stock worth $1,030,000 after purchasing an additional 35 shares in the last quarter. Finally, Ashton Thomas Securities LLC grew its stake in Automatic Data Processing by 4.1% in the first quarter. Ashton Thomas Securities LLC now owns 883 shares of the business services provider's stock worth $270,000 after purchasing an additional 35 shares in the last quarter. Institutional investors own 80.03% of the company's stock.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of Automatic Data Processing stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the completion of the sale, the vice president owned 80,531 shares of the company's stock, valued at approximately $24,032,866.33. The trade was a 9.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Christopher D'ambrosio sold 597 shares of Automatic Data Processing stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $296.90, for a total value of $177,249.30. Following the sale, the vice president directly owned 10,541 shares of the company's stock, valued at approximately $3,129,622.90. This represents a 5.36% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 52,516 shares of company stock worth $15,632,410. 0.20% of the stock is currently owned by corporate insiders.

Automatic Data Processing Stock Up 0.8%

Automatic Data Processing stock opened at $292.94 on Wednesday. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market capitalization of $118.67 billion, a price-to-earnings ratio of 29.35, a PEG ratio of 2.66 and a beta of 0.82. Automatic Data Processing, Inc. has a 1-year low of $272.62 and a 1-year high of $329.93. The business has a fifty day moving average price of $298.44 and a 200-day moving average price of $303.34.

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 earnings per share for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. The firm had revenue of $5.13 billion during 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% on a year-over-year basis. During the same quarter last year, the firm earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Wall Street Analyst Weigh In

ADP has been the topic of several research analyst reports. Mizuho increased their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. UBS Group dropped their target price 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. Weiss Ratings reissued a "buy (b)" rating on shares of Automatic Data Processing in a research report on Saturday, September 27th. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Finally, Morgan Stanley upped their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price 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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