Automatic Data Processing, Inc. $ADP Stock Position Lessened by IFP Advisors Inc

Key Points

• IFP Advisors Inc. cut its ADP stake by 32.3% in the fourth quarter, selling 7,043 shares and leaving it with 14,791 shares worth about $3.8 million.
• ADP reported better-than-expected quarterly results, with earnings per share of $3.37 versus $3.30 expected and revenue of $5.94 billion versus $5.85 billion estimated. The company also raised fiscal 2026 guidance to $11.01-$11.11 EPS.
• The company declared a quarterly dividend of $1.70 per share, payable July 1, implying a 3.1% annualized yield. Meanwhile, analysts now largely rate the stock a Hold, with an average target price of $249.

IFP Advisors Inc lowered its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 32.3% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 14,791 shares of the business services provider's stock after selling 7,043 shares during the quarter. IFP Advisors Inc's holdings in Automatic Data Processing were worth $3,805,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of ADP. Imprint Wealth LLC bought a new position in Automatic Data Processing during the third quarter valued at about $25,000. Cloud Capital Management LLC bought a new position in Automatic Data Processing during the third quarter valued at about $29,000. Board of the Pension Protection Fund purchased a new stake in shares of Automatic Data Processing during the fourth quarter valued at $31,000. Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing during the third quarter valued at $32,000. Finally, High Point Wealth Management LLC purchased a new stake in shares of Automatic Data Processing during the fourth quarter valued at $34,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Down 0.3%

Shares of Automatic Data Processing stock opened at $220.07 on Friday. The stock has a 50-day moving average price of $206.18 and a 200 day moving average price of $232.24. The company has a market cap of $87.97 billion, a P/E ratio of 20.53 and a beta of 0.83. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. 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 issued its earnings results 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. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period in the prior year, the firm posted $3.06 EPS. The business's revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, analysts expect that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio is presently 63.43%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.20% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several brokerages have recently commented on ADP. Cantor Fitzgerald reduced their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Argus reduced their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a report on Tuesday, May 5th. UBS Group upped their target price 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 for the company in a report on Thursday, January 29th. Finally, Mizuho reduced their price objective on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average 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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