Baird Financial Group Inc. Has $150.15 Million Stock Position in Automatic Data Processing, Inc. $ADP

Key Points

• Baird Financial Group Inc. reduced its holdings in Automatic Data Processing, Inc. by 0.5%, selling 2,517 shares to own 491,434 shares valued at $150 million.
• Multiple institutional investors have increased their positions in ADP, with Brighton Jones LLC increasing holdings by 92.1% and Caisse DE Depot ET Placement DU Quebec by 120.4%.
• Automatic Data Processing reported $2.26 earnings per share for the last quarter, exceeding analyst expectations, and has announced a quarterly dividend of $1.54 per share.

Baird Financial Group Inc. trimmed its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 0.5% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 491,434 shares of the business services provider's stock after selling 2,517 shares during the quarter. Baird Financial Group Inc. owned about 0.12% of Automatic Data Processing worth $150,148,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Activest Wealth Management boosted its holdings in Automatic Data Processing by 2,600.0% in the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after purchasing an additional 78 shares in the last quarter. Clarity Asset Management Inc. acquired a new position in Automatic Data Processing in the first quarter valued at approximately $29,000. von Borstel & Associates Inc. acquired a new stake in shares of Automatic Data Processing in the first quarter valued at approximately $30,000. Main Street Group LTD boosted its holdings in shares of Automatic Data Processing by 50.7% in the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after acquiring an additional 38 shares during the period. Finally, Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing in the first quarter valued at approximately $35,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

Shares of ADP stock traded down $0.91 during mid-day trading on Wednesday, reaching $298.86. The stock had a trading volume of 1,447,214 shares, compared to its average volume of 1,720,191. Automatic Data Processing, Inc. has a 12-month low of $267.79 and a 12-month high of $329.93. The company has a market cap of $121.05 billion, a P/E ratio of 29.95, a price-to-earnings-growth ratio of 2.78 and a beta of 0.82. The business has a 50-day simple moving average of $304.41 and a 200 day simple moving average of $305.42. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

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

Automatic Data Processing Dividend Announcement

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

Wall Street Analyst Weigh In

ADP has been the subject of several research analyst reports. Stifel Nicolaus increased their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday, July 31st. Morgan Stanley increased their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. Mizuho increased their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. Dbs Bank raised Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Finally, BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a report on Thursday, July 10th. Two equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $317.00.

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.