Barclays PLC Sells 145,152 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Barclays PLC reduced its Automatic Data Processing stake by 6.1% in the fourth quarter, selling 145,152 shares and ending with about 2.23 million shares valued at roughly $573.6 million.
• ADP reported stronger-than-expected quarterly results, posting EPS of $3.37 on revenue of $5.94 billion, both ahead of analyst estimates, with revenue up 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, payable July 1, which works out to an annualized dividend of $6.80 and a yield of about 3.0%.

Barclays PLC cut its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6.1% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,230,041 shares of the business services provider's stock after selling 145,152 shares during the quarter. Barclays PLC owned approximately 0.55% of Automatic Data Processing worth $573,633,000 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. Bard Associates Inc. acquired a new position in shares of Automatic Data Processing during the 4th quarter worth about $28,000. Baldwin Investment Management LLC increased its stake in shares of Automatic Data Processing by 4.9% during the 4th quarter. Baldwin Investment Management LLC now owns 3,104 shares of the business services provider's stock worth $798,000 after purchasing an additional 145 shares during the last quarter. Biondo Investment Advisors LLC increased its stake in shares of Automatic Data Processing by 0.3% during the 4th quarter. Biondo Investment Advisors LLC now owns 41,690 shares of the business services provider's stock worth $10,724,000 after purchasing an additional 142 shares during the last quarter. Aigen Investment Management LP acquired a new position in shares of Automatic Data Processing during the 4th quarter worth about $3,767,000. Finally, Ally Financial Inc. acquired a new position in shares of Automatic Data Processing during the 4th quarter worth about $2,058,000. 80.03% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction dated Monday, March 16th. The shares were 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.20% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have recently weighed in on ADP. Mizuho lowered their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Stifel Nicolaus lowered their price objective on shares of Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. TD Cowen upgraded shares of Automatic Data Processing to a "hold" rating in a research note on Monday, May 18th. Wells Fargo & Company upgraded shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price objective on the stock in a research note on Monday, May 18th. Finally, Guggenheim initiated coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $244.29.

Automatic Data Processing Stock Up 0.2%

Automatic Data Processing stock opened at $226.21 on Friday. The stock has a market cap of $90.42 billion, a P/E ratio of 21.10 and a beta of 0.84. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $315.98. The company's 50-day moving average price is $212.58 and its two-hundred day moving average price is $229.36.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating the consensus estimate of $3.30 by $0.07. The firm had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The business's revenue was up 7.0% on a year-over-year basis. During the same period in the prior year, the firm earned $3.06 EPS. 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 year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio is currently 63.43%.

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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