In a surprising turn of events, Sage Mountain Advisors LLC has significantly increased its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) during the first quarter of this year. According to the company’s latest Form 13F filing with the Securities and Exchange Commission, Sage Mountain Advisors LLC now holds an impressive 1,762 shares of ADP stock. This signifies an immense 81.6% increase in their position from before, with an additional 792 shares purchased during this period. As of the most recent filing with the SEC, Sage Mountain Advisors LLC’s holdings in Automatic Data Processing were valued at a whopping $392,000.
Automatic Data Processing, Inc., a renowned provider of cloud-based human capital management solutions across the globe, operates primarily through two segments: Employer Services and Professional Employer Organization (PEO). The Employer Services segment focuses on offering strategic platforms and HR outsourcing solutions that are based on cloud technology.
As markets opened on Monday, shares of ADP stock were recorded at an impressive $218.74. The company boasts a quick ratio and current ratio of 1.00 each, indicating strong liquidity measures. Furthermore, ADP maintains a debt-to-equity ratio of 0.81, highlighting its prudent financial management strategies. With a market capitalization totaling approximately $90.37 billion and a price-to-earnings (P/E) ratio standing at 27.94 along with a PEG ratio of 2.03, Automatic Data Processing is certainly holding its own in the market landscape.
Additionally, ADP exhibits a beta value of 0.80, which further affirms its stability and lower level of volatility compared to the broader market average. Over the past 50 days leading up to this article’s reference date, the firm demonstrated steady performance as reflected by its moving average price resting at $216.07; similarly over the course of 200 days prior to this reference date, the average stood at $221.79. While it’s worth mentioning that Automatic Data Processing, Inc. experienced a 12-month low of $201.46, it also reached an impressive 12-month high of $274.92, further indicating the stock’s capabilities.
The recent success and growth exhibited by Sage Mountain Advisors LLC through its increased position in Automatic Data Processing, Inc. clarify its unwavering confidence in the company’s potential and positive trajectory within the market. This indicates that ADP may continue to flourish and generate substantial returns for its shareholders going forward.
Overall, Automatic Data Processing continues to solidify its position as a leading provider of cloud-based HR solutions on a global scale. With strategic platforms and outsourcing services under its Employer Services segment, ADP remains at the forefront of innovation in this field. Its strong financials and steady market performance only serve to reinforce investor confidence in the company’s future prospects.
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ADP Attracts Attention from Institutional Investors and Analysts Amid Ownership Changes and Strong Financial Results
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”ADP” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Recently marked by a slew of changes in ownership, Automatic Data Processing (ADP), a renowned cloud-based human capital management solutions provider, has caught the attention of investors and hedge funds alike. Various institutional investors have made significant moves to acquire stakes in the company, with Centerpoint Advisors LLC investing approximately $30,000, Coppell Advisory Solutions Corp. entering with around $33,000, CarsonAllaria Wealth Management Ltd. putting in $35,000, Rebalance LLC contributing $39,000, and Arcus Capital Partners LLC stepping in with an investment valued at about $43,000. Institutional investors and hedge funds now own an impressive 78.57% of ADP’s stock.
In addition to these notable investments, ADP has attracted attention from research analysts who have been closely monitoring the company’s performance. StockNews.com recently upgraded ADP’s rating from “hold” to “buy,” while 888 reaffirmed its “maintains” rating on shares of the company. Robert W. Baird reduced its price objective for ADP from $249.00 to $235.00, and Barclays cut their price target from $278.00 to $275.00. Furthermore, Citigroup dropped its target price on ADP from $260.00 to $235.00.
Despite varied opinions among research analysts, there is a consensus rating of “Hold” for ADP according to data from Bloomberg.com. Additionally, Bloomberg shows that the average target price for ADP is currently set at $237.25.
Taking a closer look at Automatic Data Processing itself, it provides cloud-based human capital management solutions globally through its two segments: Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic platforms as well as HR outsourcing solutions.
Furthermore, in its most recent quarterly earnings report released on April 26th, ADP exceeded analyst predictions for EPS (earnings per share). The company reported earnings of $2.52 per share, surpassing the estimated $2.42 per share by $0.10. ADP also beat expectations for revenue, reporting $4.93 billion compared to projected revenue of $4.88 billion. The quarter showcased a 9.2% increase in revenue compared to the same period last year, contributing to ADP’s return on equity of 104.60% and a net margin of 18.46%. In the comparable quarter of the previous year, ADP earned an EPS of $2.21.
Moving forward, analysts anticipate Automatic Data Processing, Inc.’s earnings per share for this year to be around 8.16.
Amidst these developments, ADP also declared a quarterly dividend which was recently paid out on July 1st with stockholders receiving a dividend payment of $1.25 per share owned. This translated to an annualized dividend rate of $5.00 with a yield of approximately 2.29%. The ex-dividend date for this payout was June 8th.
Overall, Automatic Data Processing has experienced significant shifts in its ownership structure attracting major institutional investors and hedge funds alike, while research analysts hold varying opinions on its prospects as evidenced by their mixed ratings and price targets for the stock. However, ADP continues to demonstrate strong financial results both in terms of EPS and revenue growth making it an intriguing investment opportunity for those willing to dive into the complexities of software-enabled human capital management solutions in today’s ever-evolving global workforce landscape.
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