Automatic Data Processing, Inc. $ADP Shares Sold by Mitchell Capital Management Co.

Key Points

• Mitchell Capital Management cut its stake in Automatic Data Processing by 73.1% in the fourth quarter, leaving it with 1,830 shares worth about $471,000.
• ADP’s latest earnings beat expectations, reporting $3.37 EPS on $5.94 billion in revenue, both above analyst estimates, while revenue rose 7% year over year.
• Analysts remain cautious overall: several firms lowered price targets, and the stock now carries a consensus “Hold” rating with an average price target of $249.00.

Mitchell Capital Management Co. decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 73.1% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 1,830 shares of the business services provider's stock after selling 4,970 shares during the period. Mitchell Capital Management Co.'s holdings in Automatic Data Processing were worth $471,000 at the end of the most recent quarter.

Several other hedge funds have also made changes to their positions in ADP. Imprint Wealth LLC acquired a new position in Automatic Data Processing in the 3rd quarter valued at $25,000. Board of the Pension Protection Fund acquired a new position in Automatic Data Processing in the 4th quarter valued at $31,000. Y.D. More Investments Ltd acquired a new position in Automatic Data Processing in the 3rd quarter valued at $32,000. High Point Wealth Management LLC acquired a new position in Automatic Data Processing in the 4th quarter valued at $34,000. Finally, AlphaQuest LLC acquired a new position in Automatic Data Processing in the 3rd quarter valued at $38,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Activity

In other news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president directly owned 8,912 shares of the company's stock, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.20% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Citigroup reduced their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Mizuho reduced their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Wells Fargo & Company upgraded shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price objective for the company in a research report on Monday, May 18th. Robert W. Baird reduced their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Finally, BMO Capital Markets reduced their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research report on Tuesday, April 7th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $249.00.

Automatic Data Processing Trading Up 0.9%

Shares of ADP opened at $221.84 on Friday. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a 50 day simple moving average of $207.63 and a 200-day simple moving average of $230.93. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93. The stock has a market cap of $88.68 billion, a price-to-earnings ratio of 20.69 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data 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 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 company's revenue was up 7.0% on a year-over-year basis. 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 forecast that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be paid a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. Automatic Data Processing's payout ratio is currently 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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