NEOS Investment Management LLC Buys 27,482 Shares of Automatic Data Processing, Inc. $ADP

NEOS Investment Management LLC increased its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 9.9% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 306,299 shares of the business services provider’s stock after acquiring an additional 27,482 shares during the period. NEOS Investment Management LLC owned about 0.08% of Automatic Data Processing worth $68,596,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Imprint Wealth LLC bought a new stake in Automatic Data Processing during the third quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Automatic Data Processing in the 4th quarter worth about $26,000. Bard Associates Inc. bought a new position in shares of Automatic Data Processing during the 4th quarter valued at about $28,000. Whipplewood Advisors LLC increased its position in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock valued at $29,000 after purchasing an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc purchased a new position in shares of Automatic Data Processing during the 4th quarter valued at about $33,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Trading Up 0.8%

NASDAQ ADP opened at $283.53 on Friday. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $302.68. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock has a 50-day moving average of $261.29 and a 200-day moving average of $229.88. The firm has a market cap of $112.64 billion, a PE ratio of 25.92, a price-to-earnings-growth ratio of 2.55 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 billion. During the same period in the prior year, the business posted $2.26 EPS. Automatic Data Processing’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. As a group, sell-side analysts forecast that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ADP. Stifel Nicolaus boosted their target price 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. UBS Group increased their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. BMO Capital Markets lifted their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research note on Wednesday, July 29th. Wells Fargo & Company boosted 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 report on Thursday, July 30th. Finally, Citigroup upped their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a “neutral” rating in a research note on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $273.50.

Insider Activity

In other Automatic Data Processing news, VP Brian L. Michaud sold 120 shares of the firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the sale, the vice president owned 18,442 shares of the company’s stock, valued at $5,158,227.40. This trade represents a 0.65% decrease in their position. The sale was disclosed in a legal filing 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. Also, CEO Maria Black sold 29,810 shares of the firm’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 33,142 shares of company stock valued at $9,272,138. 0.20% of the stock is currently owned by company insiders.

Automatic Data Processing News Summary

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP’s August National Employment Report showed private-sector employment increased by 38,000 jobs, while base pay rose 3.2% and gross pay increased 4.7%. The report reinforces ADP’s role as a major source of employment and wage data and points to continued payroll growth, despite a moderating labor market. ADP National Employment Report
• Positive Sentiment: ADP continues to attract income-focused investors as a Dividend Aristocrat with more than 25 consecutive years of annual dividend increases. Its recurring payroll and human-resources revenue base may also appeal to investors seeking defensive exposure. Dividend Stocks Article
• Neutral Sentiment: Analysts and valuation commentary remain broadly balanced. ADP has lagged the broader technology sector over the past year, while one analysis described the shares as approximately 1% undervalued based on fresh labor data. The stock trades near the upper end of its 52-week range, which may limit near-term upside without stronger earnings catalysts. ADP Sector Performance Article
• Neutral Sentiment: Recent data showing Canadian workers benefiting from changing jobs highlights continued wage pressure and employment mobility, factors that could support demand for payroll and workforce-management services but also raise employer costs. Canadian Wage Data
• Negative Sentiment: August private payroll growth of 38,000 fell short of the 47,000 forecast and the prior month’s 44,000 increase. The slowdown could signal weaker hiring activity and slower growth in ADP’s payroll-processing volumes, although it may also increase expectations for easier Federal Reserve policy. ADP August Jobs Report
• Negative Sentiment: CEO Maria Black sold 29,810 shares worth approximately $8.4 million, reducing her direct stake by about 27%. The transaction was executed under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal but may still weigh modestly on sentiment. Maria Black Insider Sale

About Automatic Data Processing

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.