Bank of New York Mellon Corp Has $1.65 Billion Position in Automatic Data Processing, Inc. $ADP

Key Points

• Bank of New York Mellon trimmed its Automatic Data Processing stake by 3.4% in the fourth quarter, but still held 6.4 million shares valued at about $1.65 billion at the end of the period.
• ADP’s latest earnings beat expectations, with quarterly EPS of $3.37 versus the $3.30 estimate and revenue of $5.94 billion, up 7% year over year. The company also reiterated FY2026 guidance of 11.010-11.110 EPS.
• The stock has seen mixed analyst sentiment: several firms cut price targets, and the overall consensus rating remains Hold with an average price target of $249. ADP also announced a quarterly dividend of $1.70 per share, yielding about 2.9% annualized.

Bank of New York Mellon Corp cut its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.4% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 6,403,411 shares of the business services provider's stock after selling 227,738 shares during the quarter. Bank of New York Mellon Corp owned about 1.59% of Automatic Data Processing worth $1,647,150,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing in the third quarter valued at about $25,000. Board of the Pension Protection Fund acquired a new stake in Automatic Data Processing in the 4th quarter worth about $31,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing in the 3rd quarter worth about $32,000. High Point Wealth Management LLC bought a new stake in Automatic Data Processing in the 4th quarter valued at about $34,000. Finally, AlphaQuest LLC acquired a new position in shares of Automatic Data Processing during the 3rd quarter worth approximately $38,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. Stifel Nicolaus lowered their target price on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Wells Fargo & Company raised Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price target on the stock in a research report on Monday, May 18th. Citigroup lowered their price objective on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Robert W. Baird dropped their price objective on Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Finally, 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 research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $249.00.

Automatic Data Processing Stock Down 1.1%

Shares of ADP opened at $231.18 on Wednesday. The firm has a 50 day simple moving average of $208.09 and a two-hundred day simple moving average of $230.62. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $329.93. The company has a market cap of $92.41 billion, a P/E ratio of 21.57 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating 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 quarter last year, the company posted $3.06 EPS. The company's revenue for the quarter 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. Research analysts forecast that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm 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 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's payout ratio is currently 63.43%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares of the company's stock, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.20% of the stock is currently owned by corporate insiders.

About Automatic Data Processing

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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