The Manufacturers Life Insurance Company Reduces Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• The Manufacturers Life Insurance Company has reduced its stake in Automatic Data Processing, Inc. by 2.4%, now holding approximately 239,901 shares valued at $73.3 million.
• Several large investors, including Ameriprise Financial and Goldman Sachs, increased their positions in Automatic Data Processing during the first quarter, indicating continued institutional interest in the stock.
• The company reported earnings of $2.26 per share for the quarter, surpassing analyst expectations, and announced a quarterly dividend of $1.54 per share to be paid on October 1st.

The Manufacturers Life Insurance Company trimmed its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.4% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 239,901 shares of the business services provider's stock after selling 5,903 shares during the period. The Manufacturers Life Insurance Company owned about 0.06% of Automatic Data Processing worth $73,295,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Clarity Asset Management Inc. purchased a new position in shares of Automatic Data Processing during the first quarter valued at about $29,000. von Borstel & Associates Inc. purchased a new position in Automatic Data Processing in the 1st quarter worth about $30,000. Main Street Group LTD increased its stake in Automatic Data Processing by 50.7% in the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after buying an additional 38 shares during the period. Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the first quarter worth about $35,000. Finally, Abound Wealth Management lifted its stake in Automatic Data Processing by 58.1% in the first quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after acquiring an additional 43 shares during the period. Hedge funds and other institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on ADP shares. Dbs Bank raised Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. TD Securities raised their target price on Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a research report on Thursday, July 10th. Finally, UBS Group reduced their price target on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research report on Friday, June 13th. Two investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $317.00.

Automatic Data Processing Trading Up 0.5%

Shares of ADP traded up $1.60 during trading on Thursday, reaching $300.46. 615,248 shares of the company traded hands, compared to its average volume of 1,713,512. Automatic Data Processing, Inc. has a twelve month low of $267.79 and a twelve month high of $329.93. The stock has a market cap of $121.70 billion, a PE ratio of 30.11, a price-to-earnings-growth ratio of 2.78 and a beta of 0.82. The stock has a 50-day simple moving average of $304.42 and a 200-day simple moving average of $305.38. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The business had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the prior year, the company earned $2.09 earnings per share. The business's quarterly revenue was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be paid a $1.54 dividend. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's dividend payout ratio (DPR) is 61.72%.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.