Sumitomo Mitsui DS Asset Management Company Ltd Increases Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Sumitomo Mitsui DS Asset Management increased its holdings in Automatic Data Processing, Inc. (ADP) by 3.0%, bringing its total position to 57,736 shares valued at approximately $17.81 million as of the second quarter.
• ADP's stock is currently rated as a "Hold" by most analysts, with a consensus target price of $314.73, following recent upgrades from multiple financial institutions.
• Automatic Data Processing reported a 6.3% increase in revenue year-over-year, with earnings per share for the last quarter coming in at $2.26, exceeding analyst estimates.

Sumitomo Mitsui DS Asset Management Company Ltd lifted its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.0% during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 57,736 shares of the business services provider's stock after buying an additional 1,662 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in Automatic Data Processing were worth $17,806,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the company. Bangor Savings Bank boosted 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. Syntegra Private Wealth Group LLC increased its holdings 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 valued at $238,000 after purchasing an additional 35 shares during the last quarter. Transamerica Financial Advisors LLC increased its holdings 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 valued at $1,030,000 after purchasing an additional 35 shares during the last quarter. Ashton Thomas Securities LLC increased its holdings in shares of 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 acquiring an additional 35 shares in the last quarter. Finally, CBIZ Investment Advisory Services LLC grew its stake in Automatic Data Processing by 36.1% in the first quarter. CBIZ Investment Advisory Services LLC now owns 132 shares of the business services provider's stock valued at $41,000 after purchasing an additional 35 shares in the last quarter. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Down 0.0%

Automatic Data Processing stock traded down $0.06 during trading on Monday, hitting $291.94. 519,377 shares of the company were exchanged, compared to its average volume of 1,731,597. The business's 50 day moving average is $301.38 and its 200 day moving average is $303.82. Automatic Data Processing, Inc. has a 52 week low of $272.18 and a 52 week high of $329.93. The company has a market capitalization of $118.25 billion, a P/E ratio of 29.25, a PEG ratio of 2.67 and a beta of 0.82. 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 (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results 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 return on equity of 72.84% and a net margin of 19.84%.Automatic Data Processing's revenue was up 6.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. 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 declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is presently 61.72%.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 1,373 shares of the firm's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $407,190.61. Following the completion of the sale, the vice president directly owned 11,781 shares of the company's stock, valued at $3,493,891.17. This trade represents a 10.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Michael A. Bonarti sold 8,728 shares of the firm's stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total value of $2,604,697.04. Following the completion of the sale, the vice president directly owned 80,531 shares of the company's stock, valued at $24,032,866.33. This represents a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock valued at $15,632,410 in the last ninety days. Insiders own 0.21% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on ADP. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a research note on Thursday, July 10th. Mizuho lifted their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a report on Thursday, June 5th. Morgan Stanley lifted their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Finally, Stifel Nicolaus boosted their price target on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, Automatic Data Processing presently has an average rating of "Hold" and an average price target of $314.73.

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.