Bank of Nova Scotia Sells 153,118 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Bank of Nova Scotia cut its stake in Automatic Data Processing by 40.5% in the first quarter, selling 153,118 shares and leaving it with 225,299 shares worth about $45.8 million.
• ADP reported better-than-expected fiscal Q4 results, with earnings per share of $3.37 versus $3.30 expected and revenue of $5.94 billion versus $5.85 billion expected, while revenue rose 7% year over year.
• Analysts have become more cautious on the stock, with several price target cuts and a consensus rating of Hold alongside a $256 average price target.

Bank of Nova Scotia lessened its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 40.5% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 225,299 shares of the business services provider's stock after selling 153,118 shares during the quarter. Bank of Nova Scotia owned about 0.06% of Automatic Data Processing worth $45,776,000 as of its most recent SEC filing.

Several other large investors also recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. boosted its position in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after purchasing an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. lifted its position in shares of Automatic Data Processing by 950.1% in the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after acquiring an additional 3,223,855 shares in the last quarter. Norges Bank purchased a new position in shares of Automatic Data Processing in the fourth quarter valued at approximately $721,738,000. Clearbridge Investments LLC boosted its stake in shares of Automatic Data Processing by 133.3% in the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after acquiring an additional 964,405 shares during the last quarter. Finally, Wellington Management Group LLP raised its position in shares of Automatic Data Processing by 8.0% in the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider's stock valued at $1,896,944,000 after buying an additional 544,210 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analyst Ratings Changes

A number of equities analysts recently weighed in on ADP shares. BMO Capital Markets lowered their price target on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research report on Tuesday, April 7th. Argus lowered their price objective on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Jefferies Financial Group dropped their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Robert W. Baird reduced their target price on shares of Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Finally, Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and a consensus price target of $256.00.

Automatic Data Processing Stock Performance

Shares of ADP opened at $250.09 on Friday. The company's 50 day simple moving average is $231.61 and its 200-day simple moving average is $224.52. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The firm has a market cap of $99.97 billion, a PE ratio of 23.33 and a beta of 0.83. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $315.98.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results 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. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The business had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. During the same period in the prior year, the company posted $3.06 EPS. The business's revenue for the quarter was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities analysts predict that Automatic Data Processing, Inc. will post 11.08 EPS for the current year.

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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