Automatic Data Processing, Inc. $ADP Shares Bought by ProShare Advisors LLC

Key Points

• ProShare Advisors LLC increased its ADP stake by 19.7% in the fourth quarter, bringing its holdings to 1.27 million shares valued at about $326.2 million.
• ADP reported solid quarterly results, with EPS of $3.37 and revenue of $5.94 billion, both beating analyst estimates, while revenue rose 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, implying an annualized payout of $6.80 and a yield of 3.1%.

ProShare Advisors LLC grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 19.7% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,268,283 shares of the business services provider's stock after acquiring an additional 208,456 shares during the quarter. Automatic Data Processing comprises about 0.6% of ProShare Advisors LLC's holdings, making the stock its 27th largest position. ProShare Advisors LLC owned 0.31% of Automatic Data Processing worth $326,240,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently modified their holdings of ADP. Northwestern Mutual Wealth Management Co. increased its stake in shares of Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after acquiring an additional 3,415,576 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock valued at $2,004,691,000 after acquiring an additional 2,208,927 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in shares of Automatic Data Processing by 32.1% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider's stock valued at $960,831,000 after acquiring an additional 796,379 shares during the last quarter. PFA Pension Forsikringsaktieselskab acquired a new position in shares of Automatic Data Processing during the 4th quarter valued at about $139,636,000. Finally, Vanguard Group Inc. increased its stake in shares of Automatic Data Processing by 0.9% during the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider's stock valued at $12,235,907,000 after acquiring an additional 389,451 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Up 3.9%

ADP opened at $222.94 on Tuesday. The firm has a 50 day moving average price of $206.29 and a 200 day moving average price of $233.09. The company has a market cap of $89.12 billion, a PE ratio of 20.80 and a beta of 0.83. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93. 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 posted its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The company's revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current 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 given a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 3.1%. Automatic Data Processing's dividend payout ratio (DPR) is 63.43%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value 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 trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.20% of the stock is owned by company insiders.

Analyst Ratings Changes

ADP has been the subject of a number of research analyst reports. Robert W. Baird dropped their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. TD Cowen upped their price objective on shares of Automatic Data Processing from $208.00 to $216.00 and gave the company a "hold" rating in a research note on Thursday, April 30th. Citigroup dropped their target price on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Cantor Fitzgerald dropped their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a research report on Wednesday, April 29th. Finally, BMO Capital Markets dropped their target price on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $253.50.

About Automatic Data Processing

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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