27,204 Shares in Automatic Data Processing, Inc. $ADP Bought by Entropy Technologies LP

Key Points

• Entropy Technologies LP bought a new position in Automatic Data Processing, purchasing 27,204 shares valued at about $7.0 million in the fourth quarter.
• ADP reported better-than-expected quarterly results, with earnings of $3.37 per share and revenue of $5.94 billion, while also lifting FY 2026 guidance to $11.01–$11.11 EPS.
• The company declared a quarterly dividend of $1.70 per share, equal to an annualized yield of about 3.0%, and institutional investors now own roughly 80% of the stock.

Entropy Technologies LP purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 27,204 shares of the business services provider's stock, valued at approximately $6,998,000.

A number of other large investors have also recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its position in Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after buying an additional 3,415,576 shares during the last quarter. Cardano Risk Management B.V. raised its position in Automatic Data Processing by 950.1% during the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock worth $916,557,000 after buying an additional 3,223,855 shares during the last quarter. Norges Bank purchased a new position in Automatic Data Processing during the 4th quarter worth $721,738,000. Wellington Management Group LLP raised its position 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 buying an additional 2,208,927 shares during the last quarter. Finally, Clearbridge Investments LLC raised its position in Automatic Data Processing by 133.3% during the 4th quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after buying an additional 964,405 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of ADP opened at $226.21 on Friday. The company has a 50-day simple moving average of $212.58 and a 200-day simple moving average of $229.36. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The company has a market capitalization of $90.42 billion, a PE ratio of 21.10 and a beta of 0.84. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98.

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

Automatic Data Processing Dividend Announcement

The business 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 $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 63.43%.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. TD Cowen upgraded shares of Automatic Data Processing to a "hold" rating in a research report on Monday, May 18th. Cantor Fitzgerald cut their price objective on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a research report on Wednesday, April 29th. Guggenheim assumed coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective for the company. Jefferies Financial Group cut their price objective on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Finally, UBS Group upped their price objective on shares of Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $244.29.

Insider Activity

In other news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.20% of the stock is owned by corporate insiders.

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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