Automatic Data Processing, Inc. (ADP) to Issue Quarterly Dividend of $1.54 on October 1st

Automatic Data Processing, Inc. (NASDAQ:ADP) announced a quarterly dividend on Wednesday, August 6th, RTT News reports. Investors of record on Friday, September 12th will be given a dividend of 1.54 per share by the business services provider on Wednesday, October 1st. This represents a c) annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, September 12th.

Automatic Data Processing has a payout ratio of 56.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect Automatic Data Processing to earn $10.82 per share next year, which means the company should continue to be able to cover its $6.16 annual dividend with an expected future payout ratio of 56.9%.

Automatic Data Processing Stock Down 0.4%

ADP stock opened at $297.24 on Wednesday. Automatic Data Processing has a 52-week low of $270.71 and a 52-week high of $329.93. The company’s 50 day simple moving average is $303.78 and its 200-day simple moving average is $304.99. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a market capitalization of $120.39 billion, a P/E ratio of 29.78, a P/E/G ratio of 2.73 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The business had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same quarter in the previous year, the business earned $2.09 earnings per share. The firm’s revenue was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities research analysts anticipate that Automatic Data Processing will post 9.93 EPS for the current year.

Insider Activity

In other Automatic Data Processing news, VP David Foskett sold 1,373 shares of the firm’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the sale, the vice president directly owned 11,781 shares in the company, valued at $3,493,891.17. This trade represents a 10.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Maria Black sold 23,605 shares of the firm’s stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $298.32, for a total transaction of $7,041,843.60. Following the completion of the sale, the chief executive officer owned 76,161 shares in the company, valued at $22,720,349.52. This represents a 23.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 43,191 shares of company stock valued at $12,850,464. 0.21% of the stock is owned by corporate insiders.

Institutional Trading of Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Activest Wealth Management lifted its holdings in shares of Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock worth $25,000 after acquiring an additional 78 shares during the period. Mid American Wealth Advisory Group Inc. bought a new position in shares of Automatic Data Processing during the 2nd quarter worth about $26,000. Harbor Asset Planning Inc. bought a new position in shares of Automatic Data Processing during the 2nd quarter worth about $26,000. Howard Hughes Medical Institute bought a new position in shares of Automatic Data Processing during the 2nd quarter worth about $27,000. Finally, Solstein Capital LLC bought a new position in shares of Automatic Data Processing during the 2nd quarter worth about $28,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.