Automatic Data Processing, Inc. (NASDAQ:ADP) Shares Bought by Townsquare Capital LLC

Key Points

• Townsquare Capital LLC increased its stake in Automatic Data Processing, Inc. by 6.3%, acquiring an additional 3,532 shares, bringing their total to 59,922 shares valued at $18,308,000.
• Automatic Data Processing recently reported earnings of $2.26 per share, exceeding expectations and showing a 6.3% increase in revenue compared to the same quarter last year.
• The company declared a quarterly dividend of $1.54 per share, which will be distributed on October 1st, reflecting an annual yield of 2.0%.

Townsquare Capital LLC lifted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 59,922 shares of the business services provider's stock after purchasing an additional 3,532 shares during the period. Townsquare Capital LLC's holdings in Automatic Data Processing were worth $18,308,000 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 stock. von Borstel & Associates Inc. purchased a new position in Automatic Data Processing during the 1st quarter valued at about $30,000. Main Street Group LTD increased its holdings in Automatic Data Processing by 50.7% during the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after acquiring an additional 38 shares in the last quarter. Y.D. More Investments Ltd purchased a new position in Automatic Data Processing during the 1st quarter valued at about $35,000. Abound Wealth Management increased its holdings in Automatic Data Processing by 58.1% during the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after acquiring an additional 43 shares in the last quarter. Finally, Banque de Luxembourg S.A. purchased a new position in Automatic Data Processing during the 4th quarter valued at about $37,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ADP. Morgan Stanley raised their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a report on Thursday, July 10th. Stifel Nicolaus lifted their price target 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. Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a report on Thursday, June 5th. Finally, TD Securities lifted their price target 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. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and a consensus target price of $314.33.

Automatic Data Processing Trading Up 0.8%

Automatic Data Processing stock traded up $2.32 during trading on Friday, reaching $305.81. The company had a trading volume of 879,374 shares, compared to its average volume of 1,494,130. Automatic Data Processing, Inc. has a 12-month low of $258.63 and a 12-month high of $329.93. The stock's 50 day moving average price is $308.13 and its two-hundred day moving average price is $305.47. The firm has a market capitalization of $123.87 billion, a price-to-earnings ratio of 30.64, a PEG ratio of 2.80 and a beta of 0.81. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.02 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) 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 firm had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. During the same period in the previous year, the firm earned $2.09 earnings per share. Automatic Data Processing's revenue was up 6.3% compared to the same quarter last year. As a group, equities analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share 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. Investors 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 yield of 2.0%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio 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.