Nykredit A S Takes Position in Automatic Data Processing, Inc. $ADP

Nykredit A S purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 178,241 shares of the business services provider’s stock, valued at approximately $39,917,000.

Other hedge funds have also bought and sold shares of the company. BlackRock Inc. acquired a new stake in Automatic Data Processing during the second quarter valued at $8,097,229,000. State Street Corp grew its position in shares of Automatic Data Processing by 0.7% during 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 during the period. Geode Capital Management LLC grew 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 increased its stake in shares of Automatic Data Processing by 4.6% in the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock valued at $2,159,088,000 after purchasing an additional 372,413 shares in the last quarter. Finally, Wellington Management Group LLP increased its stake in shares of Automatic Data Processing by 8.0% in the 4th quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock valued at $1,896,944,000 after purchasing an additional 544,210 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Up 0.8%

Shares of NASDAQ ADP opened at $283.53 on Friday. The stock has a market cap of $112.64 billion, a PE ratio of 25.92, a P/E/G ratio of 2.55 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. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $302.68. The company has a 50-day moving average of $261.29 and a 200 day moving average of $229.88.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) 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 return on equity of 71.34% and a net margin of 20.11%.The firm’s quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, sell-side analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Insider Activity

In related news, VP Brian L. Michaud sold 120 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares of the company’s stock, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 on 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 transaction, the chief executive officer 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. 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. Insiders have sold a total of 33,142 shares of company stock valued at $9,272,138 in the last quarter. Insiders own 0.20% of the company’s stock.

Analysts Set New Price Targets

ADP has been the subject of a number of recent analyst reports. BMO Capital Markets boosted their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research report on Wednesday, July 29th. Wells Fargo & Company lifted their price target 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. Cantor Fitzgerald boosted their price target on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. Guggenheim upped their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Finally, TD Cowen increased their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a report on Monday, July 6th. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average price target of $273.50.

Key Stories Impacting Automatic Data Processing

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

Automatic Data Processing Profile

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.