VestGen Advisors LLC Purchases 5,270 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• VestGen Advisors increased its ADP stake by 168.6% in the third quarter, purchasing 5,270 additional shares for a total holding of 8,395 shares valued at approximately $2.17 million. Institutional investors collectively own 80.03% of the company.
• ADP reported quarterly earnings of $2.82 per share, exceeding estimates of $2.77, while revenue rose 6.1% year over year to $5.49 billion. The company also pays a quarterly dividend of $1.70, representing a 2.4% yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $283.27. Targets range from $250 to $340, reflecting both optimism about growth and concerns about valuation and organic growth.

VestGen Advisors LLC increased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 168.6% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 8,395 shares of the business services provider's stock after buying an additional 5,270 shares during the quarter. VestGen Advisors LLC's holdings in Automatic Data Processing were worth $2,166,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Vaquero Private Wealth Ltd. acquired a new position in Automatic Data Processing in the 3rd quarter worth approximately $64,000. AMI Investment Management Inc. lifted its stake in Automatic Data Processing by 3.6% during the 3rd quarter. AMI Investment Management Inc. now owns 1,140 shares of the business services provider's stock valued at $294,000 after acquiring an additional 40 shares during the period. William Mack & Associates Inc. purchased a new stake in shares of Automatic Data Processing in the 3rd quarter valued at $67,000. Victory Financial Group LLC purchased a new stake in shares of Automatic Data Processing in the 3rd quarter valued at $288,000. Finally, Asset Management One Co. Ltd. increased its stake in shares of Automatic Data Processing by 2.2% in the third quarter. Asset Management One Co. Ltd. now owns 197,371 shares of the business services provider's stock worth $50,934,000 after acquiring an additional 4,245 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on ADP shares. Morgan Stanley upped their price target on shares of Automatic Data Processing from $286.00 to $288.00 and gave the company an "equal weight" rating in a report on Thursday. Guggenheim restated a "buy" rating and issued a $340.00 target price on shares of Automatic Data Processing in a research note on Thursday. BMO Capital Markets raised their target price on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, September 22nd. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $290.00 price objective on shares of Automatic Data Processing in a research report on Thursday. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $283.27.

Automatic Data Processing Stock Up 0.2%

Shares of ADP opened at $286.08 on Friday. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $309.40. The stock's 50 day moving average is $276.96 and its two-hundred day moving average is $240.67. The firm has a market cap of $113.36 billion, a P/E ratio of 25.36, a PEG ratio of 2.58 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, topping the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same period in the prior year, the company posted $2.49 EPS. The business's quarterly revenue was up 6.1% on a year-over-year basis. Analysts predict that Automatic Data Processing, Inc. will post 12.29 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 2.4%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's payout ratio is presently 60.28%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 631 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the completion of the transaction, the vice president owned 18,824 shares of the company's stock, valued at $5,324,744.88. This represents a 3.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian Michaud sold 120 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares in the company, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,359 shares of company stock valued at $8,809,422 in the last 90 days. Corporate insiders own 0.15% of the company's stock.

Trending Headlines about Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now expects adjusted earnings-per-share growth of approximately 10%–12% for fiscal 2027 and increased its client-funds interest revenue outlook to $1.59 billion–$1.61 billion. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: First-quarter beat: Fiscal Q1 earnings were $2.82 per share versus the $2.77 consensus, while revenue reached $5.49 billion, slightly above estimates and up 6.1% year over year. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Growth initiatives: ADP’s earnings call highlighted momentum from AI adoption, while a new PNC Bank partnership will embed ADP payroll, HR and benefits tools into PNC’s digital banking platform, potentially expanding its small-business reach. PNC Bank and ADP announce embedded payroll solution
• Positive Sentiment: Some analysts raised targets: Guggenheim reaffirmed a Buy rating with a $340 target, while Stifel raised its target to $305 from $285. These targets imply additional upside and reinforce the positive reaction to the guidance increase.
• Neutral Sentiment: Mixed but generally higher targets: Citigroup raised its target to $295 while maintaining Neutral, Morgan Stanley lifted its target to $288 with an Equal Weight rating, and RBC assigned a $290 target with Sector Perform. The modest targets suggest analysts see limited near-term upside at the current valuation.
• Negative Sentiment: Valuation concerns remain: Jefferies raised its target to $250 but retained an Underperform rating, indicating that some analysts believe ADP’s valuation and slowing organic growth could limit gains despite the earnings beat.

About Automatic Data Processing

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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