USS Investment Management Ltd Sells 25,500 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• USS Investment Management Ltd reduced its stake in Automatic Data Processing, Inc. by 27.5%, holding 67,330 shares after selling 25,500 shares during the first quarter.
• The company recently declared a quarterly dividend of $1.54 per share, with a dividend yield of 2.1% and a payout ratio of 61.72%.
• Analysts have mixed ratings on the stock, with a consensus rating of "Hold" and an average price target of $317.00, despite some upgrades from firms like Mizuho and Stifel Nicolaus.

USS Investment Management Ltd decreased its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 27.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 67,330 shares of the business services provider's stock after selling 25,500 shares during the period. USS Investment Management Ltd's holdings in Automatic Data Processing were worth $20,568,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in ADP. Activest Wealth Management raised its position in Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after purchasing an additional 78 shares in the last quarter. Clarity Asset Management Inc. bought a new position in shares of Automatic Data Processing during the 1st quarter valued at about $29,000. von Borstel & Associates Inc. purchased a new position in shares of Automatic Data Processing during the 1st quarter valued at about $30,000. Main Street Group LTD lifted its position in Automatic Data Processing by 50.7% in the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after buying an additional 38 shares during the last quarter. Finally, Y.D. More Investments Ltd bought a new stake in Automatic Data Processing in the 1st quarter worth approximately $35,000. 80.03% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have commented on ADP. Morgan Stanley increased their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st. 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 report on Thursday, July 31st. Mizuho lifted their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. TD Securities upped their price target on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. Finally, BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research note on Thursday, July 10th. Two equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $317.00.

Automatic Data Processing Trading Down 1.2%

ADP traded down $3.50 during trading on Friday, hitting $292.99. 350,948 shares of the stock traded hands, compared to its average volume of 1,712,912. The firm has a market capitalization of $118.67 billion, a P/E ratio of 29.35, a price-to-earnings-growth ratio of 2.68 and a beta of 0.82. Automatic Data Processing, Inc. has a 12-month low of $272.18 and a 12-month high of $329.93. 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 firm has a 50-day moving average of $303.31 and a 200 day moving average of $304.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. The company had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. During the same period in the prior year, the business posted $2.09 earnings per share. Automatic Data Processing'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. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be given 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 yield of 2.1%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of the company's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the completion of the transaction, the vice president owned 80,531 shares of the company's stock, valued at $24,032,866.33. This represents a 9.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $1,368,373.98. Following the transaction, the vice president directly owned 17,536 shares of the company's stock, valued at $5,200,651.52. The trade was a 20.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 52,516 shares of company stock worth $15,632,410 over the last three months. 0.21% of the stock is owned by corporate insiders.

Automatic Data Processing Company 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.