Pinnacle Associates Ltd. Reduces Stock Position in Automatic Data Processing, Inc. $ADP

Pinnacle Associates Ltd. lessened its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 0.3% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 32,081 shares of the business services provider’s stock after selling 111 shares during the quarter. Pinnacle Associates Ltd.’s holdings in Automatic Data Processing were worth $9,894,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the company. FWG Investments LLC. purchased a new stake in Automatic Data Processing during the 2nd quarter valued at about $228,000. Amplius Wealth Advisors LLC lifted its holdings in shares of Automatic Data Processing by 28.9% in the 2nd quarter. Amplius Wealth Advisors LLC now owns 1,128 shares of the business services provider’s stock valued at $348,000 after buying an additional 253 shares during the period. Simon Quick Advisors LLC lifted its holdings in shares of Automatic Data Processing by 16.6% in the 2nd quarter. Simon Quick Advisors LLC now owns 6,076 shares of the business services provider’s stock valued at $1,874,000 after buying an additional 865 shares during the period. Strs Ohio lifted its holdings in shares of Automatic Data Processing by 8.1% in the 2nd quarter. Strs Ohio now owns 99,440 shares of the business services provider’s stock valued at $30,667,000 after buying an additional 7,468 shares during the period. Finally, Impact Partnership Wealth LLC acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at about $384,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, CEO Maria Black sold 23,605 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer owned 76,161 shares of the company’s stock, valued at $22,720,349.52. This represents a 23.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Michael A. Bonarti sold 8,728 shares of the stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the transaction, the vice president directly owned 80,531 shares of the company’s stock, valued at $24,032,866.33. The trade was a 9.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 52,516 shares of company stock valued at $15,632,410. 0.20% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on ADP shares. Wells Fargo & Company decreased their price objective on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a report on Thursday. BMO Capital Markets raised Automatic Data Processing to a “hold” rating and set a $340.00 price objective for the company in a report on Thursday, July 10th. UBS Group decreased their price objective on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, September 17th. Stifel Nicolaus boosted their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a “hold” rating in a report on Thursday, July 31st. Finally, JPMorgan Chase & Co. decreased their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $312.67.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $260.30 on Friday. The stock has a market capitalization of $105.44 billion, a price-to-earnings ratio of 25.70, a PEG ratio of 2.39 and a beta of 0.82. Automatic Data Processing, Inc. has a twelve month low of $258.19 and a twelve month high of $329.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The stock has a 50-day moving average of $289.62 and a 200 day moving average of $301.25.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The company had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the prior year, the firm posted $2.33 EPS. Automatic Data Processing’s quarterly revenue was up 7.1% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th were issued a dividend of $1.54 per share. The ex-dividend date of this dividend was Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.4%. Automatic Data Processing’s dividend payout ratio is presently 60.81%.

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.