Employees Retirement System of Texas Makes New Investment in Automatic Data Processing, Inc. $ADP

Employees Retirement System of Texas acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 22,200 shares of the business services provider’s stock, valued at approximately $6,846,000.

Other hedge funds have also made changes to their positions in the company. Activest Wealth Management raised its holdings in Automatic Data Processing by 2,600.0% in the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider’s stock valued at $25,000 after acquiring an additional 78 shares in the last quarter. Harbor Asset Planning Inc. bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $26,000. Mid American Wealth Advisory Group Inc. acquired a new position in shares of Automatic Data Processing in the second quarter valued at $26,000. Solstein Capital LLC bought a new position in Automatic Data Processing in the second quarter worth $28,000. Finally, Westside Investment Management Inc. lifted its position in Automatic Data Processing by 80.0% in the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after purchasing an additional 40 shares during the period. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $254.33 on Thursday. Automatic Data Processing, Inc. has a 1-year low of $247.18 and a 1-year high of $329.93. The company has a 50 day moving average of $273.65 and a 200-day moving average of $295.74. 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 firm has a market cap of $102.86 billion, a price-to-earnings ratio of 25.11, a PEG ratio of 2.39 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS 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 business had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.14 billion. During the same period in the prior year, the company earned $2.33 EPS. Automatic Data Processing’s revenue for the quarter was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 1st. Stockholders of record on Friday, December 12th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.54. The ex-dividend date is Friday, December 12th. Automatic Data Processing’s dividend payout ratio is 67.13%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Stifel Nicolaus increased their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a “hold” rating in a research note on Thursday, July 31st. JPMorgan Chase & Co. dropped their price target on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. Morgan Stanley raised their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 31st. Citigroup assumed coverage on Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective on the stock. Finally, Dbs Bank upgraded Automatic Data Processing to a “hold” rating in a research report on Thursday, August 21st. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $312.67.

Insiders Place Their Bets

In related news, VP David Foskett sold 1,373 shares of Automatic Data Processing stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total value of $407,190.61. Following the completion of the transaction, the vice president directly owned 11,781 shares of the company’s stock, valued at $3,493,891.17. The trade was a 10.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Michael A. Bonarti sold 8,728 shares of the stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the sale, the vice president directly owned 80,531 shares in the company, valued at approximately $24,032,866.33. This represents a 9.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 52,516 shares of company stock valued at $15,632,410 over the last three months. Company insiders own 0.20% of the company’s stock.

Automatic Data Processing Company Profile

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.