Jefferies Financial Group Inc. Takes $129.39 Million Position in Automatic Data Processing, Inc. $ADP

Jefferies Financial Group Inc. purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 577,749 shares of the business services provider’s stock, valued at approximately $129,387,000. Automatic Data Processing accounts for about 0.9% of Jefferies Financial Group Inc.’s holdings, making the stock its 9th largest position.

Other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in Automatic Data Processing in the 2nd quarter valued at about $8,097,229,000. Bank of America Corp DE acquired a new position in shares of Automatic Data Processing in the second quarter worth about $1,231,175,000. Deutsche Bank AG acquired a new position in shares of Automatic Data Processing in the second quarter worth about $994,937,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Automatic Data Processing by 6,493.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after purchasing an additional 3,415,576 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Automatic Data Processing in the second quarter valued at about $725,513,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ADP. Robert W. Baird cut their target price on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Argus cut their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a report on Tuesday, May 5th. Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a research report on Thursday, July 30th. Jefferies Financial Group decreased their target price on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Finally, Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average target price of $273.50.

Automatic Data Processing Stock Performance

ADP stock opened at $284.68 on Friday. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $305.31. The stock has a market capitalization of $113.09 billion, a price-to-earnings ratio of 26.02 and a beta of 0.81. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock’s fifty day moving average is $254.65 and its two-hundred day moving average is $227.55.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the prior year, the firm earned $2.26 earnings per share. The company’s quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, research analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

The company 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 annualized dividend and a yield of 2.4%. Automatic Data Processing’s dividend payout ratio is 62.16%.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 120 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the sale, the vice president directly owned 18,442 shares in the company, valued at $5,158,227.40. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the transaction, the vice president owned 13,193 shares of the company’s stock, valued at $3,694,040. This trade represents a 5.70% 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 3,332 shares of company stock worth $898,211 in the last 90 days. 0.20% of the stock is owned by company insiders.

Automatic Data Processing Company 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.