SteelPeak Wealth LLC Trims Stake in Automatic Data Processing, Inc. $ADP

Key Points

• SteelPeak Wealth LLC has reduced its stake in Automatic Data Processing, Inc. by 11.5%, holding 32,702 shares worth approximately $10.14 million after selling 4,244 shares in the second quarter.
• Automatic Data Processing reported earnings of $2.26 per share, exceeding analysts' expectations of $2.23, with revenues of $5.13 billion in its latest quarterly report.
• The company announced a quarterly dividend of $1.54 per share, reflecting a 2.1% yield and a payout ratio of 61.72%.

SteelPeak Wealth LLC trimmed its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 11.5% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 32,702 shares of the business services provider's stock after selling 4,244 shares during the period. SteelPeak Wealth LLC's holdings in Automatic Data Processing were worth $10,135,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Drake & Associates LLC increased its stake in shares of Automatic Data Processing by 47.0% in the 2nd quarter. Drake & Associates LLC now owns 2,048 shares of the business services provider's stock worth $632,000 after purchasing an additional 655 shares in the last quarter. Wormser Freres Gestion purchased a new stake in Automatic Data Processing in the 2nd quarter worth $3,233,000. Belpointe Asset Management LLC increased its stake in Automatic Data Processing by 11.0% in the 2nd quarter. Belpointe Asset Management LLC now owns 5,705 shares of the business services provider's stock worth $1,760,000 after buying an additional 567 shares in the last quarter. PUREfi Wealth LLC increased its stake in Automatic Data Processing by 14.2% in the 2nd quarter. PUREfi Wealth LLC now owns 3,875 shares of the business services provider's stock worth $1,195,000 after buying an additional 481 shares in the last quarter. Finally, Woodmont Investment Counsel LLC increased its stake in Automatic Data Processing by 7.1% in the 2nd quarter. Woodmont Investment Counsel LLC now owns 4,642 shares of the business services provider's stock worth $1,432,000 after buying an additional 306 shares in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 0.3%

Shares of NASDAQ:ADP opened at $290.55 on Tuesday. 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 $272.62 and a 12 month high of $329.93. The company has a 50-day moving average price of $298.75 and a 200 day moving average price of $303.41. The company has a market cap of $117.70 billion, a price-to-earnings ratio of 29.11, a PEG ratio of 2.67 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate 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 net margin of 19.84% and a return on equity of 72.84%. The firm's quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter 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. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

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

Insider Activity at Automatic Data Processing

In related news, 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 transaction of $4,033,055.43. Following the transaction, the vice president directly owned 17,684 shares of the company's stock, valued at $5,244,543.88. This trade represents a 43.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Joseph Desilva sold 4,614 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 transaction of $1,368,373.98. Following the transaction, the vice president directly owned 17,536 shares in the company, valued at approximately $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,516 shares of company stock worth $15,632,410 over the last quarter. Corporate insiders own 0.20% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have issued reports on ADP. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a research note on Thursday, July 10th. Weiss Ratings reiterated a "buy (b)" rating on shares of Automatic Data Processing in a research note on Saturday, September 27th. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Morgan Stanley increased 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. Finally, UBS Group cut their price target on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research note on Wednesday, September 17th. Three research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $316.70.

Automatic Data Processing Company 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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