Automatic Data Processing, Inc. $ADP Shares Sold by GUARDCAP ASSET MANAGEMENT Ltd

Key Points

• GUARDCAP ASSET MANAGEMENT Ltd cut its stake in Automatic Data Processing by 15.2% in the fourth quarter, selling 99,893 shares and leaving it with 556,909 shares worth about $143.3 million.
• ADP reported better-than-expected quarterly results, posting EPS of $3.37 on revenue of $5.94 billion, with revenue up 7.0% year over year. The company also reaffirmed FY 2026 guidance of $11.01 to $11.11 EPS.
• The company announced a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 3.1% yield. Meanwhile, analysts currently rate the stock a consensus “Hold” with an average price target of $249.

GUARDCAP ASSET MANAGEMENT Ltd decreased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 15.2% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 556,909 shares of the business services provider's stock after selling 99,893 shares during the quarter. Automatic Data Processing makes up 3.8% of GUARDCAP ASSET MANAGEMENT Ltd's portfolio, making the stock its 14th biggest position. GUARDCAP ASSET MANAGEMENT Ltd owned 0.14% of Automatic Data Processing worth $143,297,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of ADP. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Automatic Data Processing by 6,493.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after acquiring an additional 3,415,576 shares in the last quarter. Norges Bank acquired a new stake in Automatic Data Processing during the fourth quarter valued at approximately $721,738,000. Wellington Management Group LLP raised its stake in Automatic Data Processing by 47.8% during the third 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 buying an additional 2,208,927 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in Automatic Data Processing by 32.1% during the third 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 buying an additional 796,379 shares in the last quarter. Finally, PFA Pension Forsikringsaktieselskab acquired a new stake in Automatic Data Processing during the fourth quarter valued at approximately $139,636,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the sale, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.20% of the company's stock.

Analysts Set New Price Targets

ADP has been the topic of several research reports. Citigroup cut their price objective on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Jefferies Financial Group cut their price objective on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. TD Cowen upgraded Automatic Data Processing to a "hold" rating in a research note on Monday, May 18th. Stifel Nicolaus cut their price objective on Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. 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 equities research analyst has rated the stock with a Strong Buy rating, three have assigned 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 currently has an average rating of "Hold" and a consensus target price of $249.00.

Automatic Data Processing Stock Up 0.9%

Shares of Automatic Data Processing stock opened at $221.84 on Friday. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The business's 50 day simple moving average is $207.63 and its 200-day simple moving average is $230.93. The stock has a market capitalization of $88.68 billion, a price-to-earnings ratio of 20.69 and a beta of 0.83. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business's quarterly revenue was up 7.0% on a year-over-year basis. During the same period in the prior year, the firm earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Equities research analysts forecast that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders 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 dividend yield of 3.1%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio is presently 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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