Automatic Data Processing, Inc. $ADP Shares Purchased by ABN Amro Investment Solutions

Key Points

• ABN Amro Investment Solutions boosted its stake in Automatic Data Processing by 171.5% in the fourth quarter, ending with 23,387 shares valued at about $6.0 million.
• ADP reported better-than-expected quarterly results, with earnings of $3.37 per share on revenue of $5.94 billion, both ahead of analyst estimates. Revenue rose 7% year over year, and the company reaffirmed FY2026 EPS guidance of 11.01 to 11.11.
• The company announced a quarterly dividend of $1.70 per share, or $6.80 annually, implying a yield of 3.1%. Meanwhile, Wall Street sentiment is mixed, with a consensus rating of Hold and an average price target of $249.

ABN Amro Investment Solutions raised its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 171.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 23,387 shares of the business services provider's stock after purchasing an additional 14,772 shares during the period. ABN Amro Investment Solutions' holdings in Automatic Data Processing were worth $6,016,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. Imprint Wealth LLC bought a new position in Automatic Data Processing in the 3rd quarter valued at about $25,000. Cloud Capital Management LLC acquired a new position in shares of Automatic Data Processing in the third quarter worth about $29,000. Board of the Pension Protection Fund acquired a new position in shares of Automatic Data Processing in the fourth quarter worth about $31,000. Y.D. More Investments Ltd acquired a new position in Automatic Data Processing in the 3rd quarter valued at approximately $32,000. Finally, High Point Wealth Management LLC purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth $34,000. Institutional investors own 80.03% of the company's stock.

Insider Buying and Selling

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated 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 in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. 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 currently owned by company insiders.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $220.07 on Friday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The company has a market capitalization of $87.97 billion, a P/E ratio of 20.53 and a beta of 0.83. The company's 50 day moving average price is $206.18 and its two-hundred day moving average price is $232.24. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly 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 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 business's quarterly revenue was up 7.0% on a year-over-year basis. During the same period last year, the business earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business 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 dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's payout ratio is 63.43%.

Wall Street Analysts Forecast Growth

ADP has been the topic of several recent research reports. Stifel Nicolaus cut their price objective on shares of Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. UBS Group increased their target price 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. Guggenheim began coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target for the company. Jefferies Financial Group dropped their price objective on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Finally, JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $249.00.

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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