5,572 Shares in Automatic Data Processing, Inc. $ADP Bought by Beto Financial Group LLC

Key Points

• Beto Financial Group opened a new position in Automatic Data Processing, buying 5,572 shares valued at about $1.38 million. ADP now makes up roughly 0.9% of the fund’s portfolio.
• Institutional ownership in ADP remains heavy, with 80.03% of shares held by institutions and hedge funds. The article also notes several large investors added to or initiated stakes in the company during recent quarters.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion topping estimates. The company also declared a quarterly dividend of $1.70 per share, yielding about 2.9%.

Beto Financial Group LLC acquired a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 5,572 shares of the business services provider's stock, valued at approximately $1,380,000. Automatic Data Processing accounts for about 0.9% of Beto Financial Group LLC's investment portfolio, making the stock its 23rd largest holding.

A number of other institutional investors have also made changes to their positions in ADP. Northwestern Mutual Wealth Management Co. grew its stake in shares of Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after purchasing an additional 3,415,576 shares during the period. Norges Bank acquired a new position in Automatic Data Processing in the fourth quarter valued at about $721,738,000. Wellington Management Group LLP grew its stake in Automatic Data Processing by 47.8% in the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock valued at $2,004,691,000 after acquiring an additional 2,208,927 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Automatic Data Processing by 32.1% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider's stock valued at $960,831,000 after acquiring an additional 796,379 shares during the period. Finally, PFA Pension Forsikringsaktieselskab acquired a new position in Automatic Data Processing in the fourth quarter valued at about $139,636,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction dated Monday, March 16th. The shares were 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 of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.20% of the stock is owned by corporate insiders.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $233.74 on Tuesday. 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 stock's 50 day moving average price is $208.09 and its two-hundred day moving average price is $230.62. The firm has a market capitalization of $93.43 billion, a price-to-earnings ratio of 21.80 and a beta of 0.83. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $329.93.

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 (EPS) for the quarter, beating the consensus estimate of $3.30 by $0.07. The firm had revenue of $5.94 billion for the quarter, compared to analyst estimates 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 revenue for the quarter was up 7.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, 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 disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 2.9%. Automatic Data Processing's dividend payout ratio is currently 63.43%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on ADP shares. Wells Fargo & Company raised Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price objective for the company in a research report on Monday, May 18th. Guggenheim started coverage on 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. Citigroup reduced their price objective 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. Cantor Fitzgerald reduced their price objective 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. Finally, Robert W. Baird reduced their price objective on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $249.00.

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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