Automatic Data Processing, Inc. $ADP Shares Acquired by King Luther Capital Management Corp

Key Points

• King Luther Capital Management increased its ADP stake by 9.6% in the fourth quarter, buying 6,081 additional shares and bringing its total holding to 69,687 shares valued at about $17.9 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus estimates of $3.30 and revenue of $5.94 billion versus expectations of $5.85 billion. Revenue rose 7% year over year, and the company reaffirmed FY2026 EPS guidance of 11.01 to 11.11.
• The company also declared a quarterly dividend of $1.70 per share, payable July 1, implying an annualized dividend of $6.80 and a yield of about 3.1%. Meanwhile, analysts currently rate the stock a consensus Hold with a $249 target price.

King Luther Capital Management Corp lifted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 9.6% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 69,687 shares of the business services provider's stock after purchasing an additional 6,081 shares during the quarter. King Luther Capital Management Corp's holdings in Automatic Data Processing were worth $17,926,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in ADP. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $25,000. Cloud Capital Management LLC acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $29,000. Board of the Pension Protection Fund acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $31,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $32,000. Finally, High Point Wealth Management LLC acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $34,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $217.65 on Thursday. The company's fifty day moving average price is $207.15 and its 200 day moving average price is $231.24. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93. The stock has a market capitalization of $87.00 billion, a P/E ratio of 20.30 and a beta of 0.83. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. The firm had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm's revenue for the quarter was up 7.0% compared to the same quarter last year. During the same quarter last year, the company earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities research analysts anticipate that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed 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 is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. Automatic Data Processing's dividend payout ratio (DPR) is presently 63.43%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on ADP. Jefferies Financial Group decreased their target price on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. BMO Capital Markets dropped their price target on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. Wells Fargo & Company raised shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price target on the stock in a research note on Monday, May 18th. Robert W. Baird dropped their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Finally, Guggenheim began coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of "Hold" and a consensus target price of $249.00.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the firm's stock in a transaction on 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 approximately $1,857,706.40. This trade represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.20% of the company's stock.

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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