Oakmont Investment Advisors Inc. Invests $456,000 in Automatic Data Processing, Inc. $ADP

Oakmont Investment Advisors Inc. acquired a new position in Automatic Data Processing, Inc. (NASDAQ:ADP) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 2,036 shares of the business services provider’s stock, valued at approximately $456,000.

A number of other institutional investors and hedge funds have also recently made changes to their positions in ADP. BlackRock Inc. bought a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $8,097,229,000. State Street Corp raised its holdings in Automatic Data Processing by 0.7% in the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider’s stock valued at $4,903,769,000 after acquiring an additional 133,039 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Automatic Data Processing by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock valued at $2,977,777,000 after acquiring an additional 136,876 shares during the period. Capital Research Global Investors lifted its position in Automatic Data Processing by 4.6% during the fourth quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock worth $2,159,088,000 after purchasing an additional 372,413 shares during the period. Finally, Wellington Management Group LLP grew its stake in Automatic Data Processing by 8.0% during the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock worth $1,896,944,000 after buying an additional 544,210 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 631 shares of the stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president directly owned 18,824 shares in the company, valued at approximately $5,324,744.88. This trade represents a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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 Automatic Data Processing stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the sale, the vice president directly owned 13,193 shares in the company, valued at $3,694,040. The trade was a 5.70% decrease in their ownership of the stock. 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 worth $9,450,629. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Trading Down 2.1%

Shares of Automatic Data Processing stock opened at $277.62 on Friday. The firm has a market capitalization of $110.29 billion, a PE ratio of 25.38, a price-to-earnings-growth ratio of 2.57 and a beta of 0.82. 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 firm’s 50 day moving average is $262.37 and its 200 day moving average is $230.21. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $302.68.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating the consensus estimate of $2.59 by $0.05. The business 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 was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities research analysts forecast that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Analysts Set New Price Targets

ADP has been the subject of several analyst reports. Citigroup boosted their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a “neutral” rating in a research report on Thursday, July 30th. UBS Group lifted their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Wells Fargo & Company boosted their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Morgan Stanley upped their target price on Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Finally, Weiss Ratings raised Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing presently has an average rating of “Hold” and a consensus price target of $273.50.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a yield of approximately 2.4%. The payment reinforces the company’s appeal to income-focused investors and its long record of annual dividend increases. Dividend announcement article
• Neutral Sentiment: ADP’s August employment report showed private-sector payrolls increased by 38,000, while base pay rose 3.2% and gross pay grew 4.7%. The data highlights ADP’s influence as a labor-market information provider, but also points to a moderating hiring environment. ADP August employment report
• Neutral Sentiment: One valuation analysis described ADP as roughly 1% undervalued based on recent labor-market data, while noting that the stock has underperformed the broader technology sector. The limited valuation discount suggests investors may need stronger earnings growth to drive further upside. ADP valuation analysis
• Negative Sentiment: A Seeking Alpha analysis downgraded ADP, arguing that recent operating and market tailwinds are already reflected in the share price. The view adds valuation pressure as ADP trades at a relatively elevated earnings multiple. ADP downgrade analysis
• Negative Sentiment: CEO Maria Black sold 29,810 shares worth about $8.4 million, reducing her direct ownership by roughly 27%. Vice President Joseph Desilva separately sold 631 shares for approximately $178,000. Both transactions were executed under pre-arranged Rule 10b5-1 plans, making them less significant as discretionary bearish signals, though the sales may still weigh on sentiment. ADP insider sales
• Negative Sentiment: August private payroll growth of 38,000 missed the 47,000 forecast and slowed from 44,000 in July. A weaker hiring backdrop could reduce growth in payroll-processing volumes, although lower employment growth may increase expectations for easier Federal Reserve policy. ADP private payrolls report

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.