Automatic Data Processing, Inc. $ADP Shares Purchased by Cardinal Capital Management

Cardinal Capital Management lifted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.4% in the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 46,626 shares of the business services provider’s stock after purchasing an additional 1,970 shares during the quarter. Automatic Data Processing accounts for approximately 1.4% of Cardinal Capital Management’s investment portfolio, making the stock its 20th largest position. Cardinal Capital Management’s holdings in Automatic Data Processing were worth $12,111,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Vest Financial LLC raised its position in shares of Automatic Data Processing by 0.4% during the 3rd quarter. Vest Financial LLC now owns 501,780 shares of the business services provider’s stock valued at $129,489,000 after buying an additional 2,033 shares in the last quarter. Momentous Wealth Management Inc. bought a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $225,000. Crossmark Global Holdings Inc. grew its position in Automatic Data Processing by 15.0% in the third quarter. Crossmark Global Holdings Inc. now owns 67,677 shares of the business services provider’s stock worth $17,465,000 after acquiring an additional 8,827 shares in the last quarter. Strengthening Families & Communities LLC grew its position in Automatic Data Processing by 0.7% in the third quarter. Strengthening Families & Communities LLC now owns 10,138 shares of the business services provider’s stock worth $2,616,000 after acquiring an additional 71 shares in the last quarter. Finally, Sawyer & Company Inc purchased a new position in Automatic Data Processing in the third quarter worth about $5,084,000. Institutional investors own 80.03% of the company’s stock.

Insider Activity

In other news, VP David Kwon sold 798 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total transaction of $223,440.00. Following the transaction, the vice president owned 13,193 shares of the company’s stock, valued at approximately $3,694,040. This represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 that occurred on Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the transaction, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their position. 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 in the last ninety days. 0.15% of the stock is currently owned by company insiders.

Automatic Data Processing Trading Up 0.6%

ADP stock opened at $294.50 on Thursday. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $296.14. The stock has a market capitalization of $116.70 billion, a price-to-earnings ratio of 26.92, a price-to-earnings-growth ratio of 2.65 and a beta of 0.83. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The firm’s fifty day simple moving average is $274.19 and its two-hundred day simple moving average is $244.34.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business’s revenue was up 6.8% on a year-over-year basis. During the same quarter last 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, analysts anticipate that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

Wall Street Analyst Weigh In

Several brokerages have weighed in on ADP. Cantor Fitzgerald boosted their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. Guggenheim raised their price objective on Automatic Data Processing from $270.00 to $300.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Stifel Nicolaus raised their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a research note on Thursday, July 30th. Morgan Stanley lifted their target price on Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Finally, BMO Capital Markets lifted their target price on Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a report on Wednesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $273.50.

About Automatic Data Processing

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.