Canada Pension Plan Investment Board Cuts Stake in Automatic Data Processing, Inc. $ADP

Key Points

• The Canada Pension Plan Investment Board reduced its stake in Automatic Data Processing, Inc. by 60.3%, resulting in ownership of 260,375 shares valued at approximately $79.55 million.
• Automatic Data Processing reported $2.26 EPS for the latest quarter, surpassing estimates, with expected revenue growth of 6.3% year-over-year.
• A quarterly dividend of $1.54 per share has been declared, with an annualized yield of 2.0%, reflecting a payout ratio of 61.72%.

Canada Pension Plan Investment Board trimmed its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 60.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 260,375 shares of the business services provider's stock after selling 395,475 shares during the quarter. Canada Pension Plan Investment Board owned about 0.06% of Automatic Data Processing worth $79,552,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. AlphaCore Capital LLC purchased a new stake in Automatic Data Processing during the 1st quarter valued at approximately $688,000. Golden State Wealth Management LLC grew its holdings in Automatic Data Processing by 29.6% during the 1st quarter. Golden State Wealth Management LLC now owns 565 shares of the business services provider's stock valued at $173,000 after buying an additional 129 shares in the last quarter. GAMMA Investing LLC grew its holdings in Automatic Data Processing by 13.8% during the 1st quarter. GAMMA Investing LLC now owns 9,495 shares of the business services provider's stock valued at $2,901,000 after buying an additional 1,148 shares in the last quarter. Toronto Dominion Bank grew its holdings in Automatic Data Processing by 10.2% during the 4th quarter. Toronto Dominion Bank now owns 236,707 shares of the business services provider's stock valued at $69,290,000 after buying an additional 21,910 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC grew its holdings in Automatic Data Processing by 8.9% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 250,836 shares of the business services provider's stock valued at $76,638,000 after buying an additional 20,467 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Down 0.4%

ADP traded down $1.10 during trading on Wednesday, reaching $298.67. The company had a trading volume of 987,478 shares, compared to its average volume of 1,717,114. The stock has a market cap of $120.97 billion, a P/E ratio of 29.93, a PEG ratio of 2.78 and a beta of 0.82. The business has a 50 day simple moving average of $304.41 and a 200-day simple moving average of $305.42. Automatic Data Processing, Inc. has a 52 week low of $267.79 and a 52 week high of $329.93. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The company had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. During the same period last year, the company earned $2.09 earnings per share. Automatic Data Processing's revenue was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 9.93 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, October 1st. Shareholders of record on Friday, September 12th will be paid a $1.54 dividend. The ex-dividend date is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's dividend payout ratio (DPR) is presently 61.72%.

Analysts Set New Price Targets

ADP has been the subject of a number of research analyst reports. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Stifel Nicolaus increased their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday, July 31st. Mizuho increased their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a research report on Thursday, July 10th. Finally, UBS Group lowered their target price on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research report on Friday, June 13th. Two analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $317.00.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.