Automatic Data Processing, Inc. $ADP Position Reduced by O Shaughnessy Asset Management LLC

Key Points

• O Shaughnessy Asset Management LLC cut its ADP stake by 13.6% in the fourth quarter, selling 20,066 shares and leaving it with 127,843 shares valued at about $32.9 million.
• ADP reported stronger-than-expected quarterly results, posting $3.37 EPS on $5.94 billion in revenue, both ahead of analyst estimates, while revenue rose 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, equal to a 3.0% annualized yield, even as analysts currently hold a consensus rating of “Hold” with an average price target of $244.29.

O Shaughnessy Asset Management LLC decreased its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 13.6% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 127,843 shares of the business services provider's stock after selling 20,066 shares during the period. O Shaughnessy Asset Management LLC's holdings in Automatic Data Processing were worth $32,885,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in ADP. Brighton Jones LLC grew its stake in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after acquiring an additional 4,808 shares in the last quarter. Bison Wealth LLC lifted its position in shares of Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after purchasing an additional 681 shares in the last quarter. Schnieders Capital Management LLC. boosted its holdings in shares of Automatic Data Processing by 21.8% during the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after purchasing an additional 225 shares during the period. Osterweis Capital Management Inc. purchased a new position in Automatic Data Processing during the second quarter valued at approximately $108,000. Finally, Diversify Advisory Services LLC increased its stake in Automatic Data Processing by 17.5% in the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after buying an additional 815 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Down 1.2%

Shares of NASDAQ:ADP opened at $229.07 on Tuesday. The stock has a market capitalization of $91.57 billion, a PE ratio of 21.37 and a beta of 0.84. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $325.84. The firm has a fifty day moving average price of $210.51 and a 200 day moving average price of $229.83. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. The company 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 business's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Analysts expect that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Stifel Nicolaus dropped their price target on shares of Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. Robert W. Baird lowered their target price on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. TD Cowen raised Automatic Data Processing to a "hold" rating in a research report on Monday, May 18th. Morgan Stanley cut their price target on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 28th. Finally, UBS Group boosted their price target on Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of "Hold" and an average price target of $244.29.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction that occurred 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 of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.20% of the stock is owned by insiders.

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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