T. Rowe Price Investment Management Inc. Buys New Position in Automatic Data Processing, Inc. $ADP

Key Points

• T. Rowe Price Investment Management Inc. acquired 1,300 shares of Automatic Data Processing, valued at approximately $398,000, during the first quarter.
• Automatic Data Processing reported quarterly earnings of $2.26 EPS, exceeding estimates and showing a 6.3% increase year-over-year in revenue.
• The company declared a quarterly dividend of $1.54, with a dividend yield of 2.0%, scheduled for payment on October 1st.

T. Rowe Price Investment Management Inc. bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 1,300 shares of the business services provider's stock, valued at approximately $398,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Sentinus LLC raised its holdings in shares of Automatic Data Processing by 2.3% in the 4th quarter. Sentinus LLC now owns 1,548 shares of the business services provider's stock valued at $453,000 after purchasing an additional 35 shares during the period. Syntegra Private Wealth Group LLC raised its stake in Automatic Data Processing by 4.7% in the first quarter. Syntegra Private Wealth Group LLC now owns 779 shares of the business services provider's stock valued at $238,000 after buying an additional 35 shares during the period. Rehmann Capital Advisory Group raised its stake in Automatic Data Processing by 1.0% in the 4th quarter. Rehmann Capital Advisory Group now owns 3,686 shares of the business services provider's stock valued at $1,079,000 after acquiring an additional 36 shares during the period. Detalus Advisors LLC raised its stake in Automatic Data Processing by 2.4% in the 1st quarter. Detalus Advisors LLC now owns 1,566 shares of the business services provider's stock valued at $478,000 after acquiring an additional 37 shares during the period. Finally, Main Street Group LTD raised its stake in Automatic Data Processing by 50.7% in the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after acquiring an additional 38 shares during the period. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analysts Set New Price Targets

Several research firms have weighed in on ADP. Morgan Stanley increased their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Mizuho raised their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. UBS Group decreased their price target on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research report on Friday, June 13th. Finally, Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Two analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $317.00.

Automatic Data Processing Trading Down 0.0%

Shares of NASDAQ:ADP traded down $0.05 during midday trading on Friday, hitting $304.05. 1,106,856 shares of the stock were exchanged, compared to its average volume of 1,436,462. Automatic Data Processing, Inc. has a 12 month low of $267.79 and a 12 month high of $329.93. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $123.15 billion, a price-to-earnings ratio of 30.47, a P/E/G ratio of 2.78 and a beta of 0.82. The business's 50-day moving average price is $304.77 and its 200 day moving average price is $305.49.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same period in the previous year, the firm posted $2.09 EPS. The company's revenue for the quarter was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be paid a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.0%. Automatic Data Processing's payout ratio is currently 61.72%.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.