New Hampshire Trust has reduced its stake in shares of Automatic Data Processing, Inc. (NASDAQ: ADP) by 2.0% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission. After selling 170 shares, the institutional investor now holds 8,187 shares valued at approximately $2.5 million.
The movement in New Hampshire Trust’s holdings reflects a broader trend among institutional investors regarding Automatic Data Processing. Notably, Activest Wealth Management significantly increased its stake by 2,600% in the first quarter, acquiring an additional 78 shares to bring its total to 81 shares, worth around $25,000. Other firms, like Harbor Asset Planning Inc. and Mid American Wealth Advisory Group Inc., also established new stakes in the company, each valued at about $26,000. Institutional investors now own approximately 80.03% of Automatic Data Processing’s stock.
Analysts Share Insights on ADP
Research analysts have recently updated their ratings for Automatic Data Processing, reflecting varying outlooks for the stock. Dbs Bank upgraded the company to a “hold” rating on August 21, while Stifel Nicolaus raised its price target from $305.00 to $318.00 with a similar recommendation. In addition, Citigroup initiated coverage with a “neutral” rating and a price objective of $303.00.
On July 31, Morgan Stanley slightly adjusted its target price from $310.00 to $311.00 while maintaining an “equal weight” rating. BMO Capital Markets also upgraded ADP to a “hold” rating with a target price of $340.00. Overall, analysts have given the stock an average rating of “Hold” with a consensus price target of $313.17.
Insider Transactions and Company Performance
Recent insider transactions reveal significant activity among Automatic Data Processing executives. CEO Maria Black sold 23,605 shares on September 3 at an average price of $298.32, resulting in a total transaction value of approximately $7.04 million. After this sale, Black retains 76,161 shares valued at about $22.72 million, marking a 23.66% decrease in her ownership.
Similarly, Vice President Joseph Desilva sold 4,614 shares on the same day for an average price of $296.57, totaling approximately $1.37 million. Following this transaction, Desilva owns 17,536 shares, valued at about $5.20 million, which represents a 20.83% decrease in his stake. Over the last quarter, insiders sold a total of 52,516 shares worth around $15.63 million.
Automatic Data Processing’s stock opened at $280.94 on Friday, with a market capitalization of $113.81 billion. The company reported a price-to-earnings ratio of 28.15 and a PEG ratio of 2.57. The firm’s twelve-month stock performance reflects a low of $272.62 and a high of $329.93.
On July 30, Automatic Data Processing announced earnings of $2.26 per share for the previous quarter, surpassing the consensus estimate of $2.23 by $0.03. The firm’s quarterly revenue totaled $5.13 billion, exceeding estimates of $5.05 billion, with a net margin of 19.84% and a return on equity of 72.84%. The company anticipates earnings per share for the fiscal year 2026 to be between $10.811 and $11.011.
In addition to its financial performance, Automatic Data Processing recently declared a quarterly dividend of $1.54 per share, paid on October 1. This dividend, which reflects an annualized amount of $6.16 and a yield of 2.2%, further demonstrates the company’s commitment to returning value to its shareholders.
Automatic Data Processing remains a key player in providing cloud-based human capital management solutions across the globe, operating through two main segments: Employer Services and Professional Employer Organization (PEO).
