10,248 Shares in Automatic Data Processing, Inc. $ADP Bought by Inspire Investing LLC

Key Points

• Inspire Investing LLC opened a new position in Automatic Data Processing, buying 10,248 shares valued at about $2.64 million in the fourth quarter.
• ADP continues to attract heavy institutional ownership, with about 80.03% of shares held by institutional investors and hedge funds, including major stake increases from firms like State Street and Geode Capital Management.
• The company recently beat earnings and revenue expectations, reporting $3.37 EPS on $5.94 billion in revenue, and it also announced a quarterly dividend of $1.70 per share, implying a 3.1% yield.

Inspire Investing LLC bought a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund bought 10,248 shares of the business services provider's stock, valued at approximately $2,636,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. State Street Corp grew its stake in Automatic Data Processing by 0.7% during the 4th quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock worth $4,903,769,000 after purchasing an additional 133,039 shares in the last quarter. Geode Capital Management LLC grew its stake in Automatic Data Processing by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock worth $2,977,777,000 after purchasing an additional 136,876 shares in the last quarter. Capital Research Global Investors grew its stake in Automatic Data Processing by 4.6% during the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock worth $2,159,088,000 after purchasing an additional 372,413 shares in the last quarter. Wellington Management Group LLP grew its stake in Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Finally, Invesco Ltd. grew its stake in Automatic Data Processing by 5.7% during the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider's stock worth $1,419,951,000 after purchasing an additional 261,312 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Stock Down 1.5%

ADP stock opened at $218.76 on Thursday. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $315.98. The company's 50 day moving average is $213.61 and its two-hundred day moving average is $228.50. The stock has a market cap of $87.44 billion, a P/E ratio of 20.41 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The company had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. During the same quarter last year, the company earned $3.06 earnings per share. The firm's revenue for the quarter was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Research analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's payout ratio is presently 63.43%.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on ADP shares. UBS Group lifted their price target on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. TD Cowen raised Automatic Data Processing to a "hold" rating in a report on Monday, May 18th. Morgan Stanley decreased their price target on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a report on Tuesday, April 28th. Stifel Nicolaus decreased their price target on Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Finally, Cantor Fitzgerald decreased their price target on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average price target of $244.29.

About Automatic Data Processing

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.

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