Summit Financial LLC Acquires 870 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Summit Financial LLC has increased its stake in Automatic Data Processing, Inc. (ADP) by 4.5%, bringing its total holdings to 20,219 shares valued at approximately $6.18 million.
• Several institutional investors have also made significant moves in ADP, with GAMMA Investing LLC increasing its holdings by over 34,000% during the first quarter, now owning nearly 2.9 million shares worth about $886 million.
• Automatic Data Processing reported strong quarterly earnings, beating analyst estimates with a net revenue of $5.13 billion and earnings per share of $2.26, while also announcing a quarterly dividend of $1.54 per share.

Summit Financial LLC raised its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 4.5% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 20,219 shares of the business services provider's stock after purchasing an additional 870 shares during the quarter. Summit Financial LLC's holdings in Automatic Data Processing were worth $6,178,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also bought and sold shares of ADP. GAMMA Investing LLC lifted its position in Automatic Data Processing by 34,655.1% during the first quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock valued at $886,345,000 after purchasing an additional 2,892,660 shares during the last quarter. Nuveen LLC bought a new stake in shares of Automatic Data Processing in the 1st quarter worth about $661,771,000. Northern Trust Corp lifted its holdings in shares of Automatic Data Processing by 17.1% in the 4th quarter. Northern Trust Corp now owns 6,174,419 shares of the business services provider's stock worth $1,807,438,000 after acquiring an additional 902,354 shares during the last quarter. Mackenzie Financial Corp lifted its holdings in shares of Automatic Data Processing by 128.1% in the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock worth $484,480,000 after acquiring an additional 890,440 shares during the last quarter. Finally, SG Americas Securities LLC lifted its holdings in shares of Automatic Data Processing by 811.7% in the 1st quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock worth $194,806,000 after acquiring an additional 567,664 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on ADP shares. Morgan Stanley raised their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Stifel Nicolaus raised their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Mizuho raised their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a report on Thursday, July 10th. Finally, TD Securities raised their target price on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. Two investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $317.00.

Automatic Data Processing Trading Down 1.3%

Shares of ADP opened at $304.94 on Friday. Automatic Data Processing, Inc. has a 1-year low of $267.25 and a 1-year high of $329.93. The company has a 50-day moving average of $305.08 and a 200 day moving average of $305.63. The firm has a market capitalization of $123.51 billion, a price-to-earnings ratio of 30.56, a PEG ratio of 2.83 and a beta of 0.81. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05.

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 for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.05 billion. During the same quarter last year, the business posted $2.09 EPS. The firm's revenue for the quarter was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, research analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be issued a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) 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.

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