Kinloch Capital LLC Makes New $4.36 Million Investment in Automatic Data Processing, Inc. $ADP

Kinloch Capital LLC acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) in the second quarter, Holdings Channel reports. The fund acquired 19,473 shares of the business services provider’s stock, valued at approximately $4,361,000.

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

Automatic Data Processing Price Performance

NASDAQ ADP opened at $283.01 on Tuesday. 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 has a market capitalization of $112.43 billion, a price-to-earnings ratio of 25.87 and a beta of 0.81. The company has a 50 day simple moving average of $250.86 and a 200-day simple moving average of $226.50. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $307.80.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion for 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 was up 6.8% on a year-over-year basis. During the same period in the previous year, the firm posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities research 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 announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid 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 2.4%. Automatic Data Processing’s dividend payout ratio (DPR) is 62.16%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Brian L. Michaud sold 120 shares of the business’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the transaction, the vice president directly owned 18,442 shares in the company, valued at $5,158,227.40. The trade was a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 2,414 shares of the company’s 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 transaction, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. This trade represents a 19.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 3,332 shares of company stock worth $898,211. 0.20% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. Wells Fargo & Company lifted their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Stifel Nicolaus increased their target price on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Guggenheim raised their target price on Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Morgan Stanley lifted their price target on Automatic Data Processing from $240.00 to $286.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Finally, UBS Group upped their price target on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and a consensus price target of $273.50.

Automatic Data Processing 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.