BlackRock Inc. Buys Shares of 36,156,415 Automatic Data Processing, Inc. $ADP

Key Points

• BlackRock acquired 36.16 million ADP shares worth approximately $8.1 billion, giving it a 9.05% stake. Institutional investors collectively own about 80.03% of the company.
• ADP reported quarterly earnings of $2.64 per share, exceeding estimates by $0.05, while revenue rose 6.8% year over year to $5.47 billion. The company provided fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a 2.6% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

BlackRock Inc. bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 36,156,415 shares of the business services provider's stock, valued at approximately $8,097,229,000. BlackRock Inc. owned about 9.05% of Automatic Data Processing at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. State Street Corp boosted its stake in Automatic Data Processing by 0.7% in the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider's stock valued at $4,903,769,000 after acquiring an additional 133,039 shares during the last quarter. Geode Capital Management LLC grew its holdings in Automatic Data Processing by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider's stock worth $2,977,777,000 after acquiring an additional 136,876 shares during the period. Capital Research Global Investors raised its position in shares of Automatic Data Processing by 4.6% during the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider's stock valued at $2,159,088,000 after acquiring an additional 372,413 shares during the last quarter. Wellington Management Group LLP raised its position in shares of Automatic Data Processing by 8.0% during the 4th 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 acquiring an additional 544,210 shares during the last quarter. Finally, Deutsche Bank AG acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $994,937,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

ADP opened at $266.06 on Tuesday. The stock has a market cap of $105.69 billion, a P/E ratio of 24.32 and a beta of 0.81. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $310.08. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The company has a fifty day simple moving average of $245.82 and a 200 day simple moving average of $225.35.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same period in the previous year, the company posted $2.26 earnings per share. The company's revenue for the quarter was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, research analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, September 11th. Automatic Data Processing's payout ratio is 62.16%.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the transaction, the vice president directly owned 9,660 shares in the company, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by company insiders.

Analyst Ratings Changes

ADP has been the subject of a number of recent analyst reports. BMO Capital Markets upped their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Citigroup boosted their target price on Automatic Data Processing from $230.00 to $287.00 and gave the stock a "neutral" rating in a research report on Thursday, July 30th. Weiss Ratings raised Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Guggenheim increased their price target on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Finally, Argus reduced their price objective on shares of 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. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and an average target price of $273.50.

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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