Automatic Data Processing, Inc. $ADP Stock: Willis Investment Counsel Lowers Holdings

Willis Investment Counsel cut its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 7.6% during the 3rd quarter, HoldingsChannel reports. The firm owned 136,756 shares of the business services provider’s stock after selling 11,300 shares during the quarter. Automatic Data Processing accounts for about 1.5% of Willis Investment Counsel’s portfolio, making the stock its 16th largest position. Willis Investment Counsel’s holdings in Automatic Data Processing were worth $35,291,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Thrive Wealth Management LLC grew its stake in shares of Automatic Data Processing by 3.5% in the second quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider’s stock valued at $243,000 after buying an additional 37 shares in the last quarter. Tanager Wealth Management LLP raised its holdings in shares of Automatic Data Processing by 4.1% during the 3rd quarter. Tanager Wealth Management LLP now owns 971 shares of the business services provider’s stock valued at $251,000 after buying an additional 38 shares during the period. Aull & Monroe Investment Management Corp raised its holdings in shares of Automatic Data Processing by 0.3% during the 3rd quarter. Aull & Monroe Investment Management Corp now owns 15,668 shares of the business services provider’s stock valued at $4,043,000 after buying an additional 44 shares during the period. Guardian Partners Inc. lifted its position in Automatic Data Processing by 0.9% during the 1st quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider’s stock worth $1,044,000 after acquiring an additional 47 shares in the last quarter. Finally, Bank & Trust Co lifted its position in Automatic Data Processing by 1.3% during the 2nd quarter. Bank & Trust Co now owns 3,908 shares of the business services provider’s stock worth $875,000 after acquiring an additional 50 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Stock Up 1.5%

Shares of NASDAQ ADP traded up $4.34 during midday trading on Tuesday, reaching $291.37. 853,463 shares of the company’s stock were exchanged, compared to its average volume of 2,848,926. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $294.27. The business’s fifty day moving average price is $273.26 and its two-hundred day moving average price is $243.06. The stock has a market capitalization of $115.45 billion, a PE ratio of 26.65, a price-to-earnings-growth ratio of 2.62 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $5.44 billion. During the same period in the prior year, the company posted $2.26 EPS. Automatic Data Processing’s quarterly 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. Analysts forecast that Automatic Data Processing, Inc. will post 12.27 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were issued a $1.70 dividend. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.3%. Automatic Data Processing’s dividend payout ratio is currently 62.16%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. TD Cowen upped their price target on Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a report on Monday, July 6th. Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, September 22nd. Cantor Fitzgerald boosted their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Finally, Wells Fargo & Company upped their target price on shares of 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 investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and an average target price of $273.50.

Insider Activity at Automatic Data Processing

In other news, VP Brian L. Michaud sold 120 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the sale, the vice president owned 18,442 shares of the company’s stock, valued at approximately $5,158,227.40. The trade was a 0.65% decrease in their position. The transaction was disclosed in a document filed 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 company’s stock in a transaction dated Wednesday, September 2nd. The shares were 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 owned 80,624 shares in the company, valued at approximately $22,648,087.84. This trade represents a 26.99% 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. Over the last quarter, insiders have sold 33,773 shares of company stock valued at $9,450,629. 0.15% of the stock is owned by insiders.

About Automatic Data Processing

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.