Strive Financial Group LLC Has $331,000 Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Strive Financial Group LLC cut its ADP stake by 76.7% in the second quarter, selling 4,867 shares and retaining 1,476 shares valued at approximately $331,000. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations with earnings of $2.64 per share and revenue of $5.47 billion, up 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, representing a 2.4% yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $273.50, while ADP recently traded at $277.62. CEO Maria Black also sold about $8.4 million in shares under a pre-arranged Rule 10b5-1 plan.

Strive Financial Group LLC trimmed its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 76.7% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,476 shares of the business services provider's stock after selling 4,867 shares during the period. Strive Financial Group LLC's holdings in Automatic Data Processing were worth $331,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of ADP. Imprint Wealth LLC acquired a new stake in Automatic Data Processing during the 3rd quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $26,000. Bard Associates Inc. acquired a new position in shares of Automatic Data Processing in the fourth quarter worth about $28,000. Whipplewood Advisors LLC increased its position 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 worth $29,000 after acquiring an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc purchased a new position in shares of Automatic Data Processing in the fourth quarter worth approximately $33,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

ADP stock opened at $277.62 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market cap of $110.29 billion, a P/E ratio of 25.38, a P/E/G ratio of 2.57 and a beta of 0.82. The firm has a 50 day simple moving average of $262.37 and a 200 day simple moving average of $230.21. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $302.68.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm's revenue was up 6.8% on a year-over-year basis. During the same period in the previous year, the firm posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on ADP shares. TD Cowen upped their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research report on Monday, July 6th. BMO Capital Markets lifted their price objective 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. Cantor Fitzgerald boosted their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Wells Fargo & Company increased their target price on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Finally, Stifel Nicolaus raised their target price on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $273.50.

Key Automatic Data Processing News

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a yield of approximately 2.4%. The payment reinforces the company’s appeal to income-focused investors and its long record of annual dividend increases. Dividend announcement article
• Neutral Sentiment: ADP’s August employment report showed private-sector payrolls increased by 38,000, while base pay rose 3.2% and gross pay grew 4.7%. The data highlights ADP’s influence as a labor-market information provider, but also points to a moderating hiring environment. ADP August employment report
• Neutral Sentiment: One valuation analysis described ADP as roughly 1% undervalued based on recent labor-market data, while noting that the stock has underperformed the broader technology sector. The limited valuation discount suggests investors may need stronger earnings growth to drive further upside. ADP valuation analysis
• Negative Sentiment: A Seeking Alpha analysis downgraded ADP, arguing that recent operating and market tailwinds are already reflected in the share price. The view adds valuation pressure as ADP trades at a relatively elevated earnings multiple. ADP downgrade analysis
• Negative Sentiment: CEO Maria Black sold 29,810 shares worth about $8.4 million, reducing her direct ownership by roughly 27%. Vice President Joseph Desilva separately sold 631 shares for approximately $178,000. Both transactions were executed under pre-arranged Rule 10b5-1 plans, making them less significant as discretionary bearish signals, though the sales may still weigh on sentiment. ADP insider sales
• Negative Sentiment: August private payroll growth of 38,000 missed the 47,000 forecast and slowed from 44,000 in July. A weaker hiring backdrop could reduce growth in payroll-processing volumes, although lower employment growth may increase expectations for easier Federal Reserve policy. ADP private payrolls report

Insider Transactions at Automatic Data Processing

In related news, CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the sale, the chief executive officer owned 80,624 shares of the company's stock, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the business's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the transaction, the vice president owned 13,193 shares in the company, valued at $3,694,040. This trade represents a 5.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,773 shares of company stock valued at $9,450,629 in the last three months. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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