Diversify Advisory Services LLC Acquires New Stake in Automatic Data Processing, Inc. $ADP

Diversify Advisory Services LLC bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 36,413 shares of the business services provider’s stock, valued at approximately $9,285,000.

Other large investors have also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Automatic Data Processing during the 2nd quarter valued at about $8,097,229,000. Deutsche Bank AG bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $994,937,000. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Automatic Data Processing by 6,493.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after purchasing an additional 3,415,576 shares during the period. Bank of New York Mellon Corp bought a new position in Automatic Data Processing in the second quarter worth approximately $725,513,000. Finally, Cardano Risk Management B.V. increased its holdings in Automatic Data Processing by 950.1% during the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock worth $916,557,000 after purchasing an additional 3,223,855 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

ADP stock opened at $269.31 on Wednesday. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $310.08. The firm has a market cap of $106.99 billion, a price-to-earnings ratio of 24.62 and a beta of 0.81. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a 50-day simple moving average of $246.58 and a two-hundred day simple moving average of $225.48.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data 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 during the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the business posted $2.26 EPS. Automatic Data Processing’s revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts forecast that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.5%. Automatic Data Processing’s dividend payout ratio is presently 62.16%.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the sale, the vice president owned 9,660 shares in the company, valued at approximately $2,565,889.20. This represents a 19.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.20% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have weighed in on ADP. Stifel Nicolaus increased their price target on Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a research report on Thursday, July 30th. TD Cowen increased their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a report on Monday, July 6th. Robert W. Baird reduced their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Mizuho lowered their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Finally, Citigroup lifted their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $273.50.

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.