Automatic Data Processing, Inc. $ADP Shares Acquired by UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC

Key Points

• UBS AM increased its stake in ADP by 1.3% in the fourth quarter, ending with 3.39 million shares valued at about $871.1 million. Institutional investors and hedge funds now own roughly 80% of the stock.
• ADP reported solid quarterly results, beating analyst estimates with EPS of $3.37 and revenue of $5.94 billion, while revenue rose 7% year over year. The company also reiterated FY2026 EPS guidance of 11.01 to 11.11.
• The company declared a quarterly dividend of $1.70 per share, or $6.80 annualized, for a 3.0% yield. ADP also saw mixed analyst sentiment, with an average rating of “Hold” and a consensus price target of $244.29.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.3% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 3,386,321 shares of the business services provider's stock after buying an additional 43,676 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned 0.84% of Automatic Data Processing worth $871,063,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of ADP. Brighton Jones LLC raised its position in shares of Automatic Data Processing by 92.1% in the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after buying an additional 4,808 shares during the last quarter. Bison Wealth LLC raised 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 valued at $1,073,000 after buying an additional 681 shares during the last quarter. Schnieders Capital Management LLC. raised its position in shares of Automatic Data Processing by 21.8% in the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock valued at $388,000 after buying an additional 225 shares during the last quarter. Osterweis Capital Management Inc. purchased a new stake in shares of Automatic Data Processing in the second quarter valued at about $108,000. Finally, Diversify Advisory Services LLC grew its holdings in shares of Automatic Data Processing by 17.5% in the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after purchasing an additional 815 shares during the period. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Trading Up 0.2%

Shares of ADP opened at $226.21 on Friday. 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, Inc. has a 12-month low of $188.16 and a 12-month high of $315.98. The firm has a 50-day moving average price of $212.58 and a 200 day moving average price of $229.36. The firm has a market capitalization of $90.42 billion, a P/E ratio of 21.10 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced 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 company had revenue of $5.94 billion during the quarter, compared to analyst estimates 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 revenue was up 7.0% compared to the same quarter last year. During the same quarter last year, the firm posted $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Announces Dividend

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

Analyst Ratings Changes

ADP has been the subject of a number of analyst reports. Citigroup dropped their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a report on Thursday, April 30th. Guggenheim initiated coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective for the company. BMO Capital Markets dropped their price objective on shares of 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. Cantor Fitzgerald dropped their price objective on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Finally, Stifel Nicolaus dropped their price objective on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and an average price target of $244.29.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.20% of the stock is currently owned by company insiders.

Automatic Data Processing 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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