On September 17, 2023, it was announced that Sanders Morris Harris LLC has acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) during the second quarter. This information was disclosed in their most recent 13F filing with the Securities & Exchange Commission. The fund has purchased 2,450 shares of the business services provider’s stock, amounting to approximately $536,000.
Automatic Data Processing is a prominent player in providing business solutions and services. Their diverse offerings cater to the evolving needs of enterprises across various industries. With this acquisition by Sanders Morris Harris LLC, it indicates that they see potential growth in ADP and recognize its value as an investment opportunity.
In addition to this development, Automatic Data Processing recently announced a quarterly dividend for its shareholders. The dividend is scheduled to be paid on Sunday, October 1st. To be eligible for the dividend payment, investors must have been recorded as shareholders on Friday, September 8th. The dividend payout stands at $1.25 per share on an annualized basis, resulting in a yield of 2.04%. It is worth noting that the ex-dividend date was set for Thursday, September 7th.
This dividend payout showcases Automatic Data Processing’s commitment to returning value to its shareholders through regular distributions. By maintaining a strong dividend payout ratio of 60.98%, ADP exemplifies its dedication to providing consistent returns to investors while ensuring sustainable business growth.
As investors analyze these developments pertaining to ADP’s stake acquisition and dividend distribution strategy, they may consider the potential impact on the company’s stock performance and overall market perception. Moreover, stakeholders will be keenly observing how these actions align with Automatic Data Processing’s long-term business objectives and profitability goals.
It should also be noted that financial decisions involve risks and individuals seeking investment opportunities are advised to conduct thorough research and analysis based on their unique circumstances and risk tolerance.
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Institutional Investors Show Confidence in ADP’s Potential as Financial World Reacts to Recent Activities
On September 17, 2023, the financial world was abuzz with news regarding institutional investors and their activities surrounding Automatic Data Processing (ADP). Several prominent firms had recently bought and sold shares of the company, making waves in the market.
One such investor was Arlington Partners LLC, which acquired a new position in ADP during the first quarter. The value of this purchase amounted to approximately $36,000. Shortly after, Regal Investment Advisors LLC increased its stake in ADP by 1.4% during the fourth quarter, now owning over 13,000 shares that were valued at $3,208,000. These transactions exemplify the high degree of confidence and interest that these institutional investors have in ADP’s potential for growth and profitability.
Abacus Planning Group Inc., another institution that recognizes ADP’s value, saw fit to increase its stake in the company by 17.1% during the second quarter. This move solidified their trust in ADP’s business services and pushed the value of their holdings to $301,000 with 1,368 shares.
Notably, First Trust Advisors LP also demonstrated faith in ADP by growing its position in the company by 4.0% during the first quarter. This brought their total number of shares to an impressive 1,204,418 valued at $268,140,000.
Finally, Bogart Wealth LLC joined the ranks of institutional investors displaying confidence in ADP by increasing its holdings by 34.1% during the first quarter as well. Their acquisition of an additional 86 shares brought their total ownership to 338 shares worth $75,000.
Collectively, these institutional investors now own a significant portion of ADP’s stock—amounting to about 79.37% overall—an impressive testament to both their belief in ADP’s potential and their willingness to invest substantial resources into it.
While institutional investments are undoubtedly intriguing, it is also essential to consider the opinions and recommendations of research reports in the financial world. Various market analysts have provided valuable insights into ADP’s growth potential and their expectations for the stock’s performance.
Mizuho, in particular, boosted ADP’s price target from $255.00 to $285.00. They deemed the stock attractive enough to warrant a “buy” rating, signifying their confidence in ADP’s trajectory. JPMorgan Chase & Co., on the other hand, upgraded their price objective to $280.00; however, they assigned an “underweight” rating to the stock.
In addition, Morgan Stanley also joined in on increasing ADP’s target price from $240.00 to $260.00, showcasing their optimism regarding its future prospects.
Royal Bank of Canada chimed in with a “sector perform” rating and set a target price of $267.00 for ADP—a report that reflects favorable yet moderate expectations for the company’s performance going forward.
Lastly, Robert W. Baird raised its price target from $235.00 to $270.00—another optimistic viewpoint that indicated continued growth for ADP.
While these research reports provide valuable guidance to investors looking to make informed decisions about ADP, it is important to acknowledge that there are varying opinions among analysts within the industry. Bloomberg data reveals an average rating of “Hold” for ADP with an average target price of approximately $249.57.
As investors digest this influx of information and weigh their options carefully, they can look at NASDAQ as a reliable source for monitoring ADP’s stock performance daily during trading hours—particularly on September 17th when shares opened at $245.31.
For those interested in delving further into ADP’s standing within the markets, additional key indicators can be examined: a fifty-day simple moving average of $246.38 and a two-hundred-day simple moving average of $226.83. These figures provide insights into ADP’s stock performance over time. The one-year low stands at $201.46, while the one-year high reaches an impressive $274.92.
Furthermore, it is crucial to understand ADP’s financial position within the market. With a market capitalization of $101.07 billion, ADP’s shares currently boast a price-to-earnings ratio of 29.92 and a price-to-earnings-growth ratio of 2.32—metrics that shed light on its potential for growth relative to its current valuation.
Another essential factor that investors should consider is ADP’s beta, which sits at 0.81, indicating a lower level of volatility compared to the broader market.
Turning attention to ADP’s financial performance, it becomes evident why institutional investors and analysts are closely following the company’s developments. In its latest earnings report issued on July 26th, ADP surpassed expectations by reporting an impressive $1.89 earnings per share (EPS) for the quarter—outdoing consensus estimates of $1.83 EPS.
Additionally, ADP reported revenue of $4.48 billion during the quarter—an increase of 8.5% compared to the same
