Ballentine Partners LLC, a wealth management firm, has increased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 2.6% during the second quarter of this year, according to its recent disclosure with the Securities and Exchange Commission. The firm now owns 19,014 shares of the business services provider’s stock, acquiring an additional 490 shares in the process. With a value of $4,179,000 as stated in its latest SEC filing, Ballentine Partners LLC’s holdings in Automatic Data Processing reflect their confidence in the company’s potential for growth and stability.
Automatic Data Processing is a leading provider of business outsourcing solutions that support organizations worldwide in managing their workforce and human capital management needs. The company offers a range of services such as payroll processing, tax and compliance management, talent acquisition and management, benefits administration, and retirement solutions.
In addition to growing its holdings in Automatic Data Processing, Ballentine Partners LLC recently disclosed that the company paid out a quarterly dividend on Sunday, October 1st. Shareholders who were recorded on Friday, September 8th received a dividend of $1.25 per share. This translates to an annualized dividend of $5.00 with a yield of 2.03%. The ex-dividend date was Thursday, September 7th.
Automatic Data Processing’s consistent dividend payments indicate its commitment to delivering value to shareholders while also reflecting its financial strength and stability as a company. With a dividend payout ratio of 60.98%, the company strikes a balance between distributing profits to shareholders and reinvesting in future growth opportunities.
Investors closely monitor dividends declared by companies as they provide insights into their financial health and prospects for sustained profitability over time. A consistent dividend payment history can be indicative of mature businesses with stable earnings streams.
For investors considering Automatic Data Processing for potential investment opportunities or existing shareholders wishing to evaluate the company’s performance, the recent disclosure by Ballentine Partners LLC about its increased holdings and the dividend payout provides valuable information. It showcases investor confidence in the company’s long-term growth prospects and financial stability.
It is worth noting that investors should conduct thorough research and analysis before making any investment decisions, taking into account their own financial goals, risk tolerance, and portfolio diversification strategies. Consulting with a qualified financial advisor is always advisable to ensure investment decisions align with individual circumstances.
As of October 8, 2023, Automatic Data Processing continues to be a prominent player in the business outsourcing industry, backed by the support and confidence of major investors like Ballentine Partners LLC.
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ADP Attracts Interest from Hedge Funds and Institutional Investors, Poised for Success in Business Services Sector
Automatic Data Processing (ADP), a leading provider of business services, has seen an increase in interest from hedge funds and institutional investors. These investors have either added to or reduced their stakes in the company, indicating their perception of its performance and potential.
One such investor is Signet Financial Management LLC, which grew its position in ADP by 1.3% during the fourth quarter. This resulted in Signet Financial Management owning 3,587 shares of the company’s stock, with a total worth of $857,000 after purchasing an additional 45 shares.
PFS Investments Inc. also increased its holdings in ADP during the same period by 3.4%. With an additional 46 shares acquired, PFS Investments now owns 1,396 shares worth approximately $333,000.
Cornell Pochily Investment Advisors Inc. had a more modest increase of 1.1% during the first quarter, resulting in ownership of 4,175 shares valued at $929,000 after acquiring an extra 46 shares.
Similarly, 180 Wealth Advisors LLC saw a rise of 3.3% for its holdings during the second quarter. Owning 1,436 shares now worth $314,000 after adding another 46 shares to their portfolio.
Lastly, Stokes Family Office LLC boosted its position in ADP by 1.0% during the fourth quarter. With an additional purchase of 47 shares, Stokes Family Office now owns 4,595 shares worth $1,098,000.
Collectively, institutional investors and hedge funds currently own approximately 79.37% of ADP’s stock.
Various equities research analysts have recently provided insights into ADP’s performance and outlook. JPMorgan Chase & Co., for example has given the stock an “underweight” rating and raised their target price from $260 to $280 on August 22nd.
Morgan Stanley also raised their target price from $240 to $260 on July 27th, indicating a positive outlook for the company.
Barclays reviewed ADP’s stock and raised their price target from $275 to $285 on July 28th, reflecting favorable trends in the company’s performance.
Royal Bank of Canada initiated coverage on ADP with a “sector perform” rating and set the price objective at $267 on September 5th.
Finally, Robert W. Baird upgraded their target price from $235 to $270 on July 27th.
Overall, the consensus rating for ADP is “Hold,” according to Bloomberg.com, with a consensus price target of $250.62.
NASDAQ-listed ADP opened at $246.38 on October 8th with a 50-day simple moving average of $248.05 and a two-hundred day simple moving average of $229.36. The stock’s 52-week range is between $201.46 and $274.92.
ADP holds a market capitalization of approximately $101.50 billion, with a trailing P/E ratio of 30.05 and a P/E/G ratio of 2.31.
The company boasts stable liquidity ratios, with both its quick ratio and current ratio standing at around 0.99, indicating its ability to meet short-term obligations promptly.
In terms of debt management, ADP has maintained a debt-to-equity ratio of approximately 0.85.
ADP released its quarterly earnings report on July 26th, showing a strong performance during that period as it reported earnings per share (EPS) of $1.89 for that quarter, surpassing the consensus estimate by six cents.
The company recorded a net margin of 18.94% and an impressive return on equity (ROE) of 107.15%.
Moreover, ADP generated revenue amounting to $4.48 billion during the quarter, surpassing analysts’ expectations of $4.39 billion. This represents a year-over-year increase of 8.5%.
Analysts anticipate ADP to post earnings per share of 9.14 for the current fiscal year, further solidifying their positive outlook for the company’s performance.
As ADP continues to attract attention from hedge funds and institutional investors, its performance in the market remains robust. With a strong track record in revenue growth and profitability, coupled with positive ratings from equities research analysts, it is evident that ADP is positioned for continued success in the business services sector.