Bahl & Gaynor Inc. Sells 33,560 Shares of Automatic Data Processing, Inc. $ADP

Bahl & Gaynor Inc. trimmed its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.6% in the 3rd quarter, HoldingsChannel.com reports. The fund owned 905,130 shares of the business services provider’s stock after selling 33,560 shares during the period. Automatic Data Processing comprises 1.3% of Bahl & Gaynor Inc.’s holdings, making the stock its 21st biggest position. Bahl & Gaynor Inc.’s holdings in Automatic Data Processing were worth $265,656,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Hendershot Investments Inc. boosted its holdings in shares of Automatic Data Processing by 0.6% during the 3rd quarter. Hendershot Investments Inc. now owns 68,735 shares of the business services provider’s stock valued at $20,174,000 after purchasing an additional 435 shares during the last quarter. New Age Alpha Advisors LLC boosted its stake in Automatic Data Processing by 58.4% during the third quarter. New Age Alpha Advisors LLC now owns 30,138 shares of the business services provider’s stock valued at $8,846,000 after buying an additional 11,111 shares during the last quarter. Arete Wealth Advisors LLC grew its holdings in Automatic Data Processing by 2.0% during the 3rd quarter. Arete Wealth Advisors LLC now owns 4,562 shares of the business services provider’s stock valued at $1,335,000 after buying an additional 88 shares in the last quarter. Rafferty Asset Management LLC grew its holdings in Automatic Data Processing by 4.3% during the 3rd quarter. Rafferty Asset Management LLC now owns 78,376 shares of the business services provider’s stock valued at $23,003,000 after buying an additional 3,267 shares in the last quarter. Finally, American Century Companies Inc. increased its stake in Automatic Data Processing by 1.3% in the 3rd quarter. American Century Companies Inc. now owns 852,854 shares of the business services provider’s stock worth $250,313,000 after acquiring an additional 11,223 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Trading Down 1.8%

Shares of ADP opened at $214.36 on Monday. The company’s fifty day simple moving average is $242.81 and its 200-day simple moving average is $265.81. The company has a market cap of $86.31 billion, a P/E ratio of 20.61 and a beta of 0.86. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a twelve month low of $203.26 and a twelve month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the firm posted $2.35 EPS. The firm’s revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing declared that its Board of Directors has approved a share buyback program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Insiders Place Their Bets

In other news, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,515 shares of company stock valued at $887,074 over the last quarter. 0.20% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ADP shares. Cantor Fitzgerald began coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Morgan Stanley decreased their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 29th. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. JPMorgan Chase & Co. reduced their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Finally, Citigroup decreased their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing presently has an average rating of “Hold” and a consensus target price of $290.00.

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.