531,460 Shares in Automatic Data Processing, Inc. $ADP Acquired by Life Cycle Investment Partners Ltd

Key Points

• Life Cycle Investment Partners Ltd opened a new position in Automatic Data Processing, buying 531,460 shares valued at about $136.7 million in the fourth quarter, making ADP about 1.0% of its portfolio.
• ADP’s latest earnings beat expectations, with Q4 EPS of $3.37 versus the $3.30 estimate and revenue of $5.94 billion, up 7% year over year. The company also issued FY2026 EPS guidance of $11.01-$11.11.
• The company declared a quarterly dividend of $1.70 per share, payable July 1, for an annualized yield of about 3.0%. Meanwhile, Wall Street sentiment remains cautious, with an average rating of “Hold” and a consensus price target of $249.

Life Cycle Investment Partners Ltd acquired a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 531,460 shares of the business services provider's stock, valued at approximately $136,707,000. Automatic Data Processing makes up approximately 1.0% of Life Cycle Investment Partners Ltd's holdings, making the stock its 26th biggest holding. Life Cycle Investment Partners Ltd owned about 0.13% of Automatic Data Processing at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in ADP. Imprint Wealth LLC acquired a new stake in Automatic Data Processing in the third quarter worth approximately $25,000. Cloud Capital Management LLC acquired a new stake in Automatic Data Processing in the third quarter worth approximately $29,000. Board of the Pension Protection Fund acquired a new stake in Automatic Data Processing in the fourth quarter worth approximately $31,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing in the third quarter worth approximately $32,000. Finally, High Point Wealth Management LLC acquired a new stake in Automatic Data Processing in the fourth quarter worth approximately $34,000. 80.03% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on ADP shares. Cantor Fitzgerald cut their target price on 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. TD Cowen upgraded Automatic Data Processing to a "hold" rating in a research report on Monday, May 18th. Citigroup cut their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Morgan Stanley cut their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 28th. Finally, JPMorgan Chase & Co. cut their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a research report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $249.00.

Insider Activity at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $225.31 on Friday. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $329.93. The stock has a fifty day moving average of $206.43 and a 200-day moving average of $232.19. The company has a market capitalization of $90.06 billion, a PE ratio of 21.02 and a beta of 0.83. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04.

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

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a dividend of $1.70 per share. 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 is 63.43%.

Automatic Data Processing Company 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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