Swedbank AB Increases Position in Automatic Data Processing, Inc. $ADP

Key Points

• Swedbank AB increased its investment in Automatic Data Processing, Inc. (ADP) by 3.6%, owning 247,211 shares valued at approximately $76.24 million.
• Analysts have a consensus rating of "Hold" for ADP, with price targets ranging from $290.00 to $340.00.
• ADP recently announced a quarterly dividend of $1.54 per share, reflecting a dividend yield of 2.1% and a payout ratio of 61.72%.

Swedbank AB increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.6% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 247,211 shares of the business services provider's stock after acquiring an additional 8,668 shares during the period. Swedbank AB owned about 0.06% of Automatic Data Processing worth $76,240,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of ADP. Activest Wealth Management raised its stake in Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after buying an additional 78 shares during the last quarter. Clarity Asset Management Inc. purchased a new position in Automatic Data Processing in the first quarter worth $29,000. von Borstel & Associates Inc. purchased a new stake in shares of Automatic Data Processing during the first quarter valued at $30,000. Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing during the first quarter valued at $35,000. Finally, Abound Wealth Management lifted its position in Automatic Data Processing by 58.1% during the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after purchasing an additional 43 shares during the period. 80.03% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a report on Thursday, July 10th. Stifel Nicolaus increased their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. Royal Bank Of Canada restated a "sector perform" rating and issued a $315.00 target price on shares of Automatic Data Processing in a research note on Thursday, June 5th. Finally, Morgan Stanley lifted their price target 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. Two analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $314.73.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP traded up $1.05 during midday trading on Friday, reaching $292.00. The company's stock had a trading volume of 4,039,574 shares, compared to its average volume of 1,574,773. The business's fifty day simple moving average is $301.38 and its 200-day simple moving average is $303.81. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market capitalization of $118.27 billion, a P/E ratio of 29.26, a P/E/G ratio of 2.67 and a beta of 0.82. Automatic Data Processing, Inc. has a fifty-two week low of $272.18 and a fifty-two week high of $329.93.

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

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be issued a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Don Mcguire sold 13,599 shares of the business'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 $4,033,055.43. Following the sale, the vice president directly owned 17,684 shares in the company, valued at $5,244,543.88. The trade was a 43.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Christopher D'ambrosio sold 597 shares of the company's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $296.90, for a total value of $177,249.30. Following the transaction, the vice president directly owned 10,541 shares of the company's stock, valued at $3,129,622.90. The trade was a 5.36% decrease in their position. 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. 0.21% of the stock is owned by corporate insiders.

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.