Dearborn Partners LLC Takes $39.44 Million Position in Automatic Data Processing, Inc. $ADP

Dearborn Partners LLC acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 176,106 shares of the business services provider’s stock, valued at approximately $39,439,000. Automatic Data Processing makes up 1.8% of Dearborn Partners LLC’s portfolio, making the stock its 7th largest holding.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in ADP. Bank OZK bought a new stake in Automatic Data Processing during the second quarter worth approximately $1,638,000. Hamilton Capital LLC bought a new position in shares of Automatic Data Processing in the second quarter valued at approximately $290,000. Hayek Kallen Investment Management acquired a new stake in shares of Automatic Data Processing in the second quarter worth $571,000. Old North State Trust LLC acquired a new stake in shares of Automatic Data Processing in the second quarter worth $309,000. Finally, Equitable Holdings Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth $8,954,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Guggenheim lifted their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Argus lowered their price target on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a research report on Tuesday, May 5th. Weiss Ratings upgraded Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, July 21st. TD Cowen boosted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a research report on Monday, July 6th. Finally, Wells Fargo & Company increased their target price on Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $273.50.

Automatic Data Processing Stock Up 1.2%

ADP opened at $284.68 on Friday. The company has a market capitalization of $113.09 billion, a P/E ratio of 26.02 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. The firm’s fifty day moving average price is $254.65 and its two-hundred day moving average price is $227.55. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $305.31.

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

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, September 11th. Automatic Data Processing’s dividend payout ratio (DPR) is 62.16%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president directly owned 18,442 shares of the company’s stock, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total transaction of $223,440.00. Following the completion of the sale, the vice president owned 13,193 shares in the company, valued at $3,694,040. This represents a 5.70% 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. In the last ninety days, insiders sold 3,332 shares of company stock worth $898,211. 0.20% of the stock is 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.