Southeast Asset Advisors LLC Buys 3,500 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Southeast Asset Advisors LLC increased its shareholding in Automatic Data Processing, Inc. (NASDAQ: ADP) by 194.7%, totaling 5,298 shares valued at approximately $1.6 million as of their latest SEC filing.
• Automatic Data Processing reported Q2 earnings of $2.26 EPS, surpassing estimates and demonstrating a 6.3% year-over-year revenue growth at $5.13 billion.
• The company declared a quarterly dividend of $1.54 per share, with a dividend yield of 2.0%, set to be paid on October 1st.

Southeast Asset Advisors LLC grew its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 194.7% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 5,298 shares of the business services provider's stock after acquiring an additional 3,500 shares during the quarter. Southeast Asset Advisors LLC's holdings in Automatic Data Processing were worth $1,619,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of the company. Napa Wealth Management purchased a new position in Automatic Data Processing in the first quarter worth about $515,000. Smartleaf Asset Management LLC raised its holdings in Automatic Data Processing by 4.9% in the 1st quarter. Smartleaf Asset Management LLC now owns 6,115 shares of the business services provider's stock worth $1,840,000 after acquiring an additional 285 shares during the last quarter. Biondo Investment Advisors LLC lifted its position in Automatic Data Processing by 2.0% in the 1st quarter. Biondo Investment Advisors LLC now owns 40,356 shares of the business services provider's stock valued at $12,330,000 after acquiring an additional 809 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in Automatic Data Processing by 3.1% in the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 47,816 shares of the business services provider's stock valued at $14,610,000 after acquiring an additional 1,437 shares in the last quarter. Finally, Groupe la Francaise boosted its stake in Automatic Data Processing by 11.3% during the 1st quarter. Groupe la Francaise now owns 17,126 shares of the business services provider's stock valued at $5,231,000 after purchasing an additional 1,737 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Morgan Stanley boosted their price target 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. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research note on Thursday, July 10th. Mizuho lifted their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. TD Securities boosted their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a report on Wednesday, May 21st. Finally, UBS Group dropped their target price on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a report on Friday, June 13th. Two research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and an average target price of $317.00.

Automatic Data Processing Stock Performance

Automatic Data Processing stock traded up $1.01 during midday trading on Thursday, hitting $304.10. The stock had a trading volume of 1,460,134 shares, compared to its average volume of 1,725,874. 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 52-week low of $267.79 and a 52-week high of $329.93. The company has a market capitalization of $123.17 billion, a PE ratio of 30.47, a P/E/G ratio of 2.78 and a beta of 0.81. The firm's fifty day moving average is $304.86 and its two-hundred day moving average is $305.56.

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 earnings per share 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 analyst estimates of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company's revenue was up 6.3% on a year-over-year basis. During the same period in the prior year, the business posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be given a $1.54 dividend. This represents a $6.16 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is presently 61.72%.

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.