Automatic Data Processing, Inc. $ADP Stock: Cardinal Capital Management Grows Position

Cardinal Capital Management raised its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.4% in the 3rd quarter, according to its most recent disclosure with the SEC. The firm owned 46,626 shares of the business services provider’s stock after purchasing an additional 1,970 shares during the period. Automatic Data Processing accounts for about 1.4% of Cardinal Capital Management’s investment portfolio, making the stock its 20th biggest holding. Cardinal Capital Management’s holdings in Automatic Data Processing were worth $12,111,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. bought a new position in Automatic Data Processing in the 2nd quarter worth $13,283,000. Royal Capital Wealth Management LLC purchased a new stake in Automatic Data Processing in the 2nd quarter worth $1,226,000. Canada Pension Plan Investment Board purchased a new stake in Automatic Data Processing in the 2nd quarter worth $152,706,000. Fulton Bank N.A. increased its stake in Automatic Data Processing by 192.0% in the 2nd quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider’s stock worth $1,605,000 after buying an additional 4,711 shares in the last quarter. Finally, Bank of America Corp DE bought a new stake in Automatic Data Processing during the second quarter valued at about $1,231,175,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ADP. Guggenheim boosted their price objective on Automatic Data Processing from $270.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Stifel Nicolaus upped their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a research note on Thursday, July 30th. TD Cowen increased their target price on Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a research report on Monday, July 6th. Citigroup lifted their target price on Automatic Data Processing from $230.00 to $287.00 and gave the company a “neutral” rating in a research note on Thursday, July 30th. Finally, Wells Fargo & Company lifted their target price on 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 issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and a consensus target price of $273.50.

Automatic Data Processing Price Performance

ADP stock opened at $294.50 on Thursday. 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 company’s fifty day moving average price is $274.19 and its 200-day moving average price is $244.34. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $296.14. The company has a market capitalization of $116.70 billion, a PE ratio of 26.92, a price-to-earnings-growth ratio of 2.65 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last posted 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. The company had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. Automatic Data Processing’s quarterly revenue was up 6.8% on a year-over-year basis. During the same period last year, the company posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Insider Activity at Automatic Data Processing

In other news, VP Joseph Desilva sold 631 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total transaction of $178,490.97. Following the completion of the transaction, the vice president owned 18,824 shares in the company, valued at $5,324,744.88. This trade represents a 3.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, 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 Automatic Data Processing stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value 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 $22,648,087.84. This trade represents a 26.99% 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. Insiders sold 33,773 shares of company stock worth $9,450,629 over the last 90 days. Company insiders own 0.15% of the company’s stock.

Automatic Data Processing Profile

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.