Automatic Data Processing, Inc. $ADP Shares Sold by Madison Asset Management LLC

Key Points

• Madison Asset Management LLC reduced its ADP stake by 41.6% in the first quarter, selling 29,391 shares and leaving it with 41,275 shares valued at about $8.39 million.
• Despite the sale, ADP remains widely held by institutions, with hedge funds and other institutional investors owning about 80.03% of the company’s stock.
• ADP posted solid quarterly results, beating EPS and revenue estimates, but Wall Street is still cautious: the stock has a Hold consensus rating with a consensus price target of $248.64.

Madison Asset Management LLC cut its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 41.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 41,275 shares of the business services provider's stock after selling 29,391 shares during the period. Madison Asset Management LLC's holdings in Automatic Data Processing were worth $8,386,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in ADP. Northcape Wealth Management LLC boosted its stake in shares of Automatic Data Processing by 0.6% in the fourth quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock valued at $1,692,000 after purchasing an additional 39 shares during the period. Rathbones Group PLC increased its stake in Automatic Data Processing by 1.1% during the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock worth $1,036,000 after buying an additional 42 shares during the period. Zullo Investment Group Inc. lifted its holdings in Automatic Data Processing by 2.3% during the 4th quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider's stock worth $485,000 after buying an additional 42 shares in the last quarter. Trilogy Capital Inc. lifted its holdings in Automatic Data Processing by 5.3% during the 4th quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider's stock worth $219,000 after buying an additional 43 shares in the last quarter. Finally, Blossom Wealth Management lifted its holdings in Automatic Data Processing by 3.1% during the 4th quarter. Blossom Wealth Management now owns 1,470 shares of the business services provider's stock worth $378,000 after buying an additional 44 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Down 3.5%

Shares of NASDAQ:ADP opened at $246.22 on Wednesday. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $315.98. The firm's 50 day moving average price is $229.52 and its 200 day moving average price is $224.51. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The stock has a market cap of $98.42 billion, a price-to-earnings ratio of 22.97 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, topping the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The company had revenue of $5.94 billion during the quarter, compared to analysts' expectations of $5.85 billion. During the same quarter in the previous year, the business posted $3.06 EPS. The firm's revenue was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 11.08 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have commented on ADP. Mizuho dropped their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. UBS Group increased 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. Wells Fargo & Company lifted their target price on Automatic Data Processing from $214.00 to $248.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Citigroup lowered their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Finally, Guggenheim restated a "buy" rating and set a $270.00 price target on shares of Automatic Data Processing in a report on Tuesday. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $248.64.

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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