Bessemer Group Inc. Sells 19,625 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Bessemer Group Inc. reduced its stake in Automatic Data Processing by 8.1% in the fourth quarter, selling 19,625 shares and leaving it with 221,376 shares worth about $56.9 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus estimates of $3.30 and revenue of $5.94 billion versus $5.85 billion, while revenue rose 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, implying a 3.2% yield, while analysts currently have a consensus rating of Hold and a target price of $253.50.

Bessemer Group Inc. trimmed its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 8.1% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 221,376 shares of the business services provider's stock after selling 19,625 shares during the period. Bessemer Group Inc. owned 0.05% of Automatic Data Processing worth $56,945,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Imprint Wealth LLC bought a new stake in Automatic Data Processing in the third quarter worth approximately $25,000. Cloud Capital Management LLC bought a new stake in Automatic Data Processing in the third quarter worth approximately $29,000. Board of the Pension Protection Fund bought a new stake in Automatic Data Processing in the fourth quarter worth approximately $31,000. Y.D. More Investments Ltd bought a new stake in Automatic Data Processing in the third quarter worth approximately $32,000. Finally, High Point Wealth Management LLC bought a new stake in Automatic Data Processing in the fourth quarter worth approximately $34,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $214.48 on Friday. 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 company has a fifty day simple moving average of $206.29 and a 200 day simple moving average of $233.82. The company has a market cap of $85.73 billion, a P/E ratio of 20.01 and a beta of 0.83. 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 posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.30 by $0.07. The business had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. Automatic Data Processing's quarterly revenue was up 7.0% compared to the same quarter last year. 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. On average, sell-side analysts predict that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio is currently 63.43%.

Insider Activity

In related news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president directly owned 8,912 shares of the company's stock, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Morgan Stanley decreased their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 28th. Wells Fargo & Company decreased their target price on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating for the company in a research report on Friday, March 27th. Guggenheim assumed coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They issued a "buy" rating and a $270.00 target price for the company. Jefferies Financial Group decreased their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Finally, Mizuho decreased their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and a consensus target price of $253.50.

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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