Wormser Freres Gestion Invests $3.23 Million in Automatic Data Processing, Inc. $ADP

Key Points

• Wormser Freres Gestion has acquired a new position in Automatic Data Processing, Inc. (ADP), investing approximately $3.23 million for 10,488 shares, which represents 1.9% of its portfolio.
• Significant institutional investment has been noted with 80.03% of the stock currently held by institutional investors, including a massive purchase by Nuveen LLC valued at about $661.77 million.
• Automatic Data Processing recently announced a quarterly dividend of $1.54 per share, translating to an annualized dividend yield of 2.1% and a payout ratio of 61.72%.

Wormser Freres Gestion purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 10,488 shares of the business services provider's stock, valued at approximately $3,233,000. Automatic Data Processing makes up 1.9% of Wormser Freres Gestion's portfolio, making the stock its 19th largest position.

Other institutional investors have also added to or reduced their stakes in the company. Nuveen LLC bought a new position in Automatic Data Processing in the first quarter valued at about $661,771,000. Mackenzie Financial Corp boosted its stake in shares of Automatic Data Processing by 128.1% in the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock valued at $484,480,000 after purchasing an additional 890,440 shares in the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Automatic Data Processing by 15.7% during the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after purchasing an additional 601,400 shares during the last quarter. SG Americas Securities LLC increased its position in Automatic Data Processing by 811.7% during the 1st quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock worth $194,806,000 after purchasing an additional 567,664 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in Automatic Data Processing by 22.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,059,100 shares of the business services provider's stock valued at $934,647,000 after purchasing an additional 564,187 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Don Mcguire sold 13,599 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following the transaction, the vice president owned 17,684 shares in the company, valued at approximately $5,244,543.88. This represents a 43.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Christopher D'ambrosio sold 597 shares of the firm's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $296.90, for a total transaction of $177,249.30. Following the completion of the transaction, the vice president directly owned 10,541 shares in the company, valued at approximately $3,129,622.90. The trade was a 5.36% 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 in the last quarter. Insiders own 0.20% of the company's stock.

Automatic Data Processing Trading Up 0.5%

NASDAQ ADP opened at $291.31 on Monday. The stock has a market capitalization of $118.01 billion, a P/E ratio of 29.19, a P/E/G ratio of 2.67 and a beta of 0.82. Automatic Data Processing, Inc. has a one year low of $272.62 and a one year 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 business has a 50 day simple moving average of $299.08 and a 200 day simple moving average of $303.44.

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. The company had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. Automatic Data Processing's quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Friday, September 12th were issued a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 61.72%.

Analyst Upgrades and Downgrades

ADP has been the topic of a number of research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Automatic Data Processing in a research note on Saturday, September 27th. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a research report on Thursday, July 10th. Mizuho increased their target price on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. UBS Group reduced their price target on Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a report on Wednesday, September 17th. Finally, Morgan Stanley upped 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. Three equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $316.70.

Automatic Data Processing 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.

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