Nomura Holdings Inc. Sells 43,802 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Nomura Holdings Inc. cut its stake in Automatic Data Processing, Inc. by 62.2%, owning 26,620 shares after selling 43,802 shares in the first quarter.
• Automatic Data Processing reported $2.26 earnings per share for its latest quarter, surpassing estimates, while revenue also exceeded predictions at $5.13 billion.
• The company declared a quarterly dividend of $1.54 per share, scheduled for payment on October 1st, with a 2.0% yield.

Nomura Holdings Inc. reduced its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 62.2% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 26,620 shares of the business services provider's stock after selling 43,802 shares during the quarter. Nomura Holdings Inc.'s holdings in Automatic Data Processing were worth $8,133,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of ADP. GAMMA Investing LLC grew its position in shares of Automatic Data Processing by 34,655.1% in the 1st quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock valued at $886,345,000 after purchasing an additional 2,892,660 shares during the period. Nuveen LLC acquired a new position in shares of Automatic Data Processing in the 1st quarter valued at approximately $661,771,000. Mackenzie Financial Corp grew its position in shares of Automatic Data Processing by 128.1% in the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock valued at $484,480,000 after purchasing an additional 890,440 shares during the period. Ameriprise Financial Inc. grew its position in shares of Automatic Data Processing by 15.7% in the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after purchasing an additional 601,400 shares during the period. Finally, SG Americas Securities LLC grew its position in shares of Automatic Data Processing by 811.7% in the 1st quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock valued at $194,806,000 after purchasing an additional 567,664 shares during the period. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Up 0.8%

Shares of Automatic Data Processing stock traded up $2.33 on Thursday, reaching $301.19. 1,656,890 shares of the company were exchanged, compared to its average volume of 1,719,870. Automatic Data Processing, Inc. has a one year low of $267.79 and a one year high of $329.93. The company has a market capitalization of $121.99 billion, a price-to-earnings ratio of 30.18, a PEG ratio of 2.78 and a beta of 0.82. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. The company has a 50-day moving average of $304.42 and a 200 day moving average of $305.38.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The company had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the prior year, the business posted $2.09 EPS. The business's revenue was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be paid a dividend of $1.54 per share. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.0%. Automatic Data Processing's dividend payout ratio is currently 61.72%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ADP. Mizuho boosted their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research report on Friday, June 13th. UBS Group decreased their price objective on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research report on Friday, June 13th. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a research report on Thursday, July 10th. TD Securities boosted their price objective on Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. Finally, Morgan Stanley upped their price target on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $317.00.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.