Tradition Wealth Management LLC Purchases New Position in Automatic Data Processing, Inc. $ADP

Key Points

• Tradition Wealth Management LLC has acquired a new position in Automatic Data Processing, Inc. by purchasing 910 shares valued at approximately $278,000 in the first quarter.
• Automatic Data Processing recently reported an EPS of $2.26 for the last quarter, surpassing estimates and indicating a 6.3% year-over-year revenue growth to $5.13 billion.
• The company will pay a quarterly dividend of $1.54 per share on October 1st, yielding approximately 2.0% for shareholders as it maintains a payout ratio of 61.72%.

Tradition Wealth Management LLC purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 910 shares of the business services provider's stock, valued at approximately $278,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in ADP. von Borstel & Associates Inc. bought a new position in Automatic Data Processing during the first quarter valued at approximately $30,000. Main Street Group LTD boosted its stake in Automatic Data Processing by 50.7% during the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after buying an additional 38 shares during the last quarter. Y.D. More Investments Ltd bought a new position in Automatic Data Processing during the first quarter valued at approximately $35,000. Abound Wealth Management boosted its stake 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 buying an additional 43 shares during the last quarter. Finally, Banque de Luxembourg S.A. purchased a new stake in Automatic Data Processing during the fourth quarter valued at approximately $37,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Trading Down 1.3%

ADP opened at $304.94 on Friday. The stock has a market cap of $123.51 billion, a price-to-earnings ratio of 30.56, a P/E/G ratio of 2.83 and a beta of 0.81. The stock's 50 day moving average price is $305.08 and its 200-day moving average price is $305.63. Automatic Data Processing, Inc. has a one year low of $267.25 and a one year high of $329.93. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 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 EPS for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The firm 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 company's quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be paid a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.0%. Automatic Data Processing's dividend payout ratio is currently 61.72%.

Analysts Set New Price Targets

ADP has been the subject of several analyst reports. Morgan Stanley raised their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a research note on Thursday, July 10th. UBS Group reduced their target price on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research note on Friday, June 13th. 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. Finally, 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. Two analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, Automatic Data Processing presently has an average rating of "Hold" and a consensus price target of $317.00.

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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