5,712 Shares in Automatic Data Processing, Inc. $ADP Acquired by Argos Wealth Advisors LLC

Key Points

• Argos Wealth Advisors LLC opened a new position in Automatic Data Processing, buying 5,712 shares worth about $1.47 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, both topping analyst estimates. The company also raised its FY2026 EPS guidance to $11.01-$11.11.
• The company continues to return capital to shareholders through a $6 billion stock buyback and a quarterly dividend of $1.70 per share, implying an annualized yield of about 3.2%.

Argos Wealth Advisors LLC acquired a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 5,712 shares of the business services provider's stock, valued at approximately $1,469,000.

Several other hedge funds also recently added to or reduced their stakes in the business. Valley Wealth Managers Inc. boosted its position in shares of Automatic Data Processing by 5.8% during the fourth quarter. Valley Wealth Managers Inc. now owns 2,294 shares of the business services provider's stock worth $590,000 after buying an additional 126 shares during the period. HighPoint Advisor Group LLC boosted its position in shares of Automatic Data Processing by 0.6% during the fourth quarter. HighPoint Advisor Group LLC now owns 13,796 shares of the business services provider's stock worth $3,549,000 after buying an additional 79 shares during the period. Bailard Inc. boosted its position in shares of Automatic Data Processing by 5.4% during the fourth quarter. Bailard Inc. now owns 19,912 shares of the business services provider's stock worth $5,122,000 after buying an additional 1,023 shares during the period. Blackhawk Capital Partners LLC purchased a new position in shares of Automatic Data Processing during the fourth quarter worth $833,000. Finally, AG2R LA Mondiale Gestion D Actifs boosted its position in shares of Automatic Data Processing by 7.5% during the fourth quarter. AG2R LA Mondiale Gestion D Actifs now owns 16,427 shares of the business services provider's stock worth $4,226,000 after buying an additional 1,145 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Automatic Data Processing

In related 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 value of $113,188.35. Following the transaction, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Company insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Jefferies Financial Group decreased their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Robert W. Baird decreased their target price on Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Argus decreased their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a report on Tuesday, May 5th. BMO Capital Markets decreased their target price on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a report on Tuesday, April 7th. Finally, TD Cowen lifted their target price on Automatic Data Processing from $208.00 to $216.00 and gave the company a "hold" rating in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $253.50.

Automatic Data Processing Price Performance

ADP stock opened at $213.81 on Wednesday. The business has a 50 day moving average price of $206.62 and a 200 day moving average price of $234.98. The stock has a market cap of $85.47 billion, a price-to-earnings ratio of 19.94 and a beta of 0.83. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $329.93. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its 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 firm had revenue of $5.94 billion during 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 firm's revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $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 fiscal year.

Automatic Data Processing declared that its Board of Directors has initiated a stock buyback plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The company also recently announced 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. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing's 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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