Compass Capital Management Inc. Acquires New Position in Automatic Data Processing, Inc. $ADP

Compass Capital Management Inc. bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 217,828 shares of the business services provider’s stock, valued at approximately $48,783,000. Automatic Data Processing accounts for about 2.9% of Compass Capital Management Inc.’s portfolio, making the stock its 19th largest holding. Compass Capital Management Inc. owned 0.05% of Automatic Data Processing as of its most recent SEC filing.

Several other institutional investors also recently made changes to their positions in ADP. Imprint Wealth LLC bought a new position in Automatic Data Processing during the 3rd quarter worth $25,000. Cornerstone Financial Management LLC bought a new stake in Automatic Data Processing in the fourth quarter valued at $26,000. Bard Associates Inc. bought a new stake in Automatic Data Processing in the fourth quarter valued at $28,000. Prosperity Bancshares Inc acquired a new position in shares of Automatic Data Processing during the fourth quarter valued at $33,000. Finally, High Point Wealth Management LLC acquired a new position in shares of Automatic Data Processing during the fourth quarter valued at $34,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of ADP opened at $272.96 on Monday. The firm has a market capitalization of $108.44 billion, a PE ratio of 24.95 and a beta of 0.81. 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 has a 50-day moving average price of $245.08 and a 200 day moving average price of $225.27. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $310.08.

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 analysts’ consensus estimates of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. Automatic Data Processing’s revenue was up 6.8% on a year-over-year basis. During the same period in the previous year, the firm earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th 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 2.5%. The ex-dividend date is Friday, September 11th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 62.16%.

Analyst Ratings Changes

ADP has been the subject of several recent analyst reports. Citigroup upped their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. TD Cowen boosted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a research report on Monday, July 6th. BMO Capital Markets increased their price objective 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. Morgan Stanley raised their target price on Automatic Data Processing from $240.00 to $286.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Finally, UBS Group lifted their target price on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $273.50.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the company’s stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the sale, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing 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.