71 West Capital Partners Invests $18.83 Million in Automatic Data Processing, Inc. $ADP

Key Points

• 71 West Capital Partners disclosed a new fourth-quarter position in Automatic Data Processing, buying 73,220 shares valued at about $18.83 million. ADP now makes up 0.9% of the firm’s portfolio and ranks as its 27th largest holding.
• ADP reported better-than-expected quarterly results, with earnings of $3.37 per share on revenue of $5.94 billion, both above analyst estimates. Revenue rose 7% year over year, and the company issued FY2026 EPS guidance of $11.01 to $11.11.
• The company also announced a quarterly dividend of $1.70 per share, payable July 1, which annualizes to $6.80 and yields about 3.0%. Meanwhile, analysts have turned more cautious overall, with a consensus rating of Hold and an average price target of $244.29.

71 West Capital Partners purchased a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 73,220 shares of the business services provider's stock, valued at approximately $18,834,000. Automatic Data Processing accounts for 0.9% of 71 West Capital Partners' portfolio, making the stock its 27th largest holding.

A number of other hedge funds and other institutional investors have also made changes to their positions in ADP. Okabena Investment Services Inc. raised its holdings in shares of Automatic Data Processing by 13.5% during the fourth quarter. Okabena Investment Services Inc. now owns 6,578 shares of the business services provider's stock valued at $1,692,000 after acquiring an additional 782 shares during the period. TritonPoint Partners LLC acquired a new position in Automatic Data Processing in the 4th quarter valued at approximately $487,000. USS Investment Management Ltd increased its stake in Automatic Data Processing by 0.5% in the 4th quarter. USS Investment Management Ltd now owns 68,888 shares of the business services provider's stock valued at $17,722,000 after buying an additional 322 shares during the period. Vanguard Personalized Indexing Management LLC increased its stake in Automatic Data Processing by 16.5% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 74,335 shares of the business services provider's stock valued at $19,121,000 after buying an additional 10,505 shares during the period. Finally, Palisade Asset Management LLC increased its stake in Automatic Data Processing by 1.3% in the 4th quarter. Palisade Asset Management LLC now owns 61,987 shares of the business services provider's stock valued at $15,945,000 after buying an additional 801 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $223.22 on Tuesday. 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 company has a fifty day simple moving average of $212.96 and a 200 day simple moving average of $228.98. The company has a market cap of $89.23 billion, a P/E ratio of 20.82 and a beta of 0.84. 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 posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate 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%. Automatic Data Processing's quarterly revenue was up 7.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, sell-side analysts predict that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Announces Dividend

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

Analyst Upgrades and Downgrades

Several research firms have weighed in on ADP. Mizuho dropped their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Morgan Stanley dropped their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 28th. Cantor Fitzgerald dropped their price objective on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Wells Fargo & Company upgraded shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price objective on the stock in a research note on Monday, May 18th. Finally, Jefferies Financial Group dropped their price objective on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $244.29.

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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