Automatic Data Processing, Inc. $ADP Shares Purchased by AlphaQuest LLC

Key Points

• AlphaQuest LLC sharply increased its stake in Automatic Data Processing, boosting holdings by 6,424% in the fourth quarter to 8,416 shares worth about $2.17 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 and revenue of $5.94 billion, both above analyst estimates. The company also raised FY2026 guidance to 11.01–11.11 EPS.
• The company declared a quarterly dividend of $1.70 per share, equivalent to an annualized yield of about 3.1%, while analysts currently rate the stock a consensus “Hold” with a $249 target price.

AlphaQuest LLC boosted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6,424.0% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 8,416 shares of the business services provider's stock after purchasing an additional 8,287 shares during the quarter. AlphaQuest LLC's holdings in Automatic Data Processing were worth $2,165,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also recently added to or reduced their stakes in the business. Imprint Wealth LLC acquired a new stake in Automatic Data Processing during the third quarter worth about $25,000. Cloud Capital Management LLC purchased a new stake in shares of Automatic Data Processing in the third quarter worth about $29,000. Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing in the third quarter worth about $32,000. Board of the Pension Protection Fund purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth about $31,000. Finally, High Point Wealth Management LLC purchased a new stake in shares of Automatic Data Processing in the fourth quarter worth about $34,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Down 3.1%

Shares of ADP stock opened at $218.35 on Wednesday. The stock has a market cap of $87.28 billion, a PE ratio of 20.37 and a beta of 0.83. 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 business's fifty day moving average is $206.98 and its 200-day moving average is $231.48. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93.

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 business had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company's revenue was up 7.0% compared to the same quarter last year. During the same period last year, the company posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Equities 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 firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is 63.43%.

Insider Activity at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the firm's stock in a transaction on Monday, March 16th. The stock was 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 filing with the SEC, which is available at this link. 0.20% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research analysts recently commented on ADP shares. UBS Group increased their price target on Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a report on Thursday, April 30th. JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a report on Thursday, January 29th. Citigroup reduced their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a report on Thursday, April 30th. Cantor Fitzgerald reduced their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Finally, Jefferies Financial Group reduced their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and a consensus target price of $249.00.

Automatic Data Processing Company 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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