Automatic Data Processing, Inc. $ADP Shares Bought by Allstate Corp

Key Points

• Allstate Corp increased its stake in Automatic Data Processing (ADP) by 9.9%, owning 13,287 shares valued at approximately $4.06 million.
• Automatic Data Processing recorded a 6.3% year-over-year revenue increase in its latest quarterly report, with earnings per share (EPS) of $2.26 which exceeded estimates.
• The company announced a quarterly dividend of $1.54 per share, yielding 2.0%, with a dividend payout ratio of 61.72%.

Allstate Corp grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 9.9% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 13,287 shares of the business services provider's stock after purchasing an additional 1,194 shares during the period. Allstate Corp's holdings in Automatic Data Processing were worth $4,060,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. von Borstel & Associates Inc. acquired a new position in shares of Automatic Data Processing in the 1st quarter valued at $30,000. Main Street Group LTD boosted its holdings in shares of Automatic Data Processing by 50.7% in the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after buying an additional 38 shares during the period. Y.D. More Investments Ltd purchased a new position in shares of Automatic Data Processing in the first quarter worth approximately $35,000. Abound Wealth Management lifted its position in shares of Automatic Data Processing by 58.1% in the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after acquiring an additional 43 shares in the last quarter. Finally, Banque de Luxembourg S.A. purchased a new stake in shares of Automatic Data Processing in the 4th quarter valued at approximately $37,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Down 1.3%

Automatic Data Processing stock opened at $304.94 on Friday. 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 market capitalization of $123.51 billion, a P/E ratio of 30.56, a P/E/G ratio of 2.83 and a beta of 0.81. Automatic Data Processing, Inc. has a 1-year low of $267.25 and a 1-year high of $329.93. The firm's fifty day simple moving average is $305.08 and its 200-day simple moving average is $305.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $5.05 billion. During the same quarter in the prior year, the company posted $2.09 EPS. The firm's revenue was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be issued a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.0%. Automatic Data Processing's dividend payout ratio (DPR) is 61.72%.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. TD Securities lifted their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research report on Wednesday, May 21st. Mizuho lifted their price target on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a research note on Thursday, July 10th. 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. Finally, Morgan Stanley upped their target price on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and a consensus target price of $317.00.

Automatic Data Processing 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.

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