16,369 Shares in Automatic Data Processing, Inc. $ADP Acquired by Sustainable Insight Capital Management LLC

Key Points

• Sustainable Insight Capital Management bought a new position in Automatic Data Processing, acquiring 16,369 shares worth about $4.21 million in the fourth quarter. ADP now makes up about 1.4% of the firm’s portfolio.
• ADP recently reported better-than-expected quarterly results, with earnings per share of $3.37 and revenue of $5.94 billion, both ahead of analyst estimates. The company also raised attention for its strong profitability and issued FY 2026 EPS guidance of $11.01-$11.11.
• The company declared a quarterly dividend of $1.70 per share, equivalent to a $6.80 annualized payout and a 3.0% yield. Meanwhile, analysts currently have a consensus rating of Hold with a price target of $244.29.

Sustainable Insight Capital Management LLC purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 16,369 shares of the business services provider's stock, valued at approximately $4,211,000. Automatic Data Processing accounts for approximately 1.4% of Sustainable Insight Capital Management LLC's investment portfolio, making the stock its 19th biggest holding.

A number of other institutional investors have also recently added to or reduced their stakes in the business. Northcape Wealth Management LLC raised its stake in Automatic Data Processing by 0.6% during the fourth quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock worth $1,692,000 after acquiring an additional 39 shares in the last quarter. Private Advisory Group LLC raised its stake in Automatic Data Processing by 4.8% during the third quarter. Private Advisory Group LLC now owns 867 shares of the business services provider's stock worth $254,000 after acquiring an additional 40 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC raised its stake in Automatic Data Processing by 0.3% during the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider's stock worth $4,455,000 after acquiring an additional 41 shares in the last quarter. Rathbones Group PLC raised its stake in Automatic Data Processing by 1.1% during the fourth quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock worth $1,036,000 after acquiring an additional 42 shares in the last quarter. Finally, Zullo Investment Group Inc. raised its stake in Automatic Data Processing by 2.3% during the fourth quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider's stock worth $485,000 after acquiring an additional 42 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the sale, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have commented on ADP. UBS Group boosted their target price on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Stifel Nicolaus lowered their target price on Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. Mizuho lowered their target price on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Wells Fargo & Company raised Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 target price for the company in a research note on Monday, May 18th. Finally, TD Cowen raised Automatic Data Processing to a "hold" rating in a research note on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $244.29.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $225.77 on Friday. The stock has a market cap of $90.25 billion, a P/E ratio of 21.06 and a beta of 0.84. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The stock's 50-day moving average is $212.08 and its 200-day moving average is $229.38. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $315.98.

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

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's payout ratio is 63.43%.

Automatic Data Processing Profile

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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