Westpac Banking Corp Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Westpac Banking Corp acquired 30,234 shares of Automatic Data Processing worth approximately $6.77 million during the second quarter. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.64 in EPS and $5.47 billion in revenue, with revenue up 6.8% year over year. The company maintains FY 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70, equivalent to $6.80 annually and a 2.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50, below the reported share price of $280.81.

Westpac Banking Corp acquired a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 30,234 shares of the business services provider's stock, valued at approximately $6,771,000.

Other hedge funds also recently made changes to their positions in the company. Imprint Wealth LLC purchased a new position in Automatic Data Processing during the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth $26,000. Bard Associates Inc. purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth $28,000. Prosperity Bancshares Inc bought a new stake in shares of Automatic Data Processing during the 4th quarter valued at $33,000. Finally, High Point Wealth Management LLC bought a new stake in shares of Automatic Data Processing during the 4th quarter valued at $34,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Trading Up 0.6%

Automatic Data Processing stock opened at $280.81 on Friday. The stock has a market cap of $111.55 billion, a P/E ratio of 25.67 and a beta of 0.81. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $308.89. The firm's 50 day moving average price is $249.66 and its 200-day moving average price is $226.31.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter in the previous year, the firm earned $2.26 earnings per share. The company's quarterly revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a $1.70 dividend. The ex-dividend date is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.4%. Automatic Data Processing's payout ratio is presently 62.16%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Argus lowered their target price on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Morgan Stanley increased their price target on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Wells Fargo & Company raised their price target on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Mizuho lowered their price objective on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Finally, Citigroup upped their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of "Hold" and an average target price of $273.50.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares of the company's stock, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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