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

Key Points

• Allstate Corp more than doubled its stake in Automatic Data Processing during the fourth quarter, increasing holdings by 108% to 32,424 shares valued at about $8.34 million.
• ADP’s latest quarterly results beat expectations, with EPS of $3.37 and revenue of $5.94 billion, while revenue rose 7% year over year. The company also reaffirmed FY2026 guidance of $11.01–$11.11 EPS.
• ADP announced a quarterly dividend of $1.70 per share to be paid July 1, implying an annualized yield of 3.1%. Meanwhile, analysts currently rate the stock a consensus Hold with a target price of $249.

Allstate Corp boosted its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 108.0% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 32,424 shares of the business services provider's stock after buying an additional 16,836 shares during the quarter. Allstate Corp's holdings in Automatic Data Processing were worth $8,340,000 at the end of the most recent quarter.

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

Analyst Ratings Changes

Several brokerages have recently commented on ADP. 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 report on Monday, May 18th. Guggenheim assumed coverage on Automatic Data Processing in a research note on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective on the stock. Stifel Nicolaus cut their price objective on Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. Argus cut their price objective on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Finally, UBS Group upped their price objective 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. 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 assigned a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and a consensus target price of $249.00.

Insiders Place Their Bets

In related 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 sale, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.20% of the stock is currently owned by company insiders.

Automatic Data Processing Trading Down 3.1%

Shares of NASDAQ ADP opened at $218.35 on Wednesday. The stock's 50 day moving average price is $206.98 and its two-hundred day moving average price is $231.48. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The stock has a market capitalization of $87.28 billion, a P/E ratio of 20.37 and a beta of 0.83. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $5.94 billion for 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 quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, 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 firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be paid a dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 3.1%. Automatic Data Processing's dividend payout ratio is 63.43%.

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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