Capital Research Global Investors Buys 372,413 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Capital Research Global Investors increased its ADP stake by 4.6% in the fourth quarter, buying 372,413 more shares and bringing its total holdings to 8.39 million shares worth about $2.16 billion.
• ADP’s latest earnings beat expectations, with quarterly EPS of $3.37 versus the $3.30 consensus and revenue of $5.94 billion, up 7% year over year. The company also issued FY 2026 EPS guidance of $11.01 to $11.11.
• Analysts remain cautious overall, with several firms cutting price targets and MarketBeat showing a consensus rating of “Hold” with an average target price of $244.29. ADP also announced a quarterly dividend of $1.70 per share, yielding about 2.9% annualized.

Capital Research Global Investors raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 4.6% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 8,393,607 shares of the business services provider's stock after purchasing an additional 372,413 shares during the period. Capital Research Global Investors owned 2.08% of Automatic Data Processing worth $2,159,088,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of ADP. Mitchell Capital Management Co. raised its holdings in shares of Automatic Data Processing by 325.0% in the 3rd quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock worth $1,996,000 after acquiring an additional 5,200 shares during the last quarter. Hilltop Holdings Inc. acquired a new stake in shares of Automatic Data Processing in the 3rd quarter worth about $5,292,000. Jefferies Financial Group Inc. acquired a new stake in shares of Automatic Data Processing in the 3rd quarter worth about $2,794,000. Cibc World Market Inc. raised its holdings in shares of Automatic Data Processing by 86.6% in the 3rd quarter. Cibc World Market Inc. now owns 93,586 shares of the business services provider's stock worth $27,467,000 after acquiring an additional 43,438 shares during the last quarter. Finally, Horizon Investments LLC raised its holdings in shares of Automatic Data Processing by 34.1% in the 4th quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider's stock worth $6,725,000 after acquiring an additional 6,655 shares during the last quarter. 80.03% of the stock is owned by institutional investors.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the company's 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 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 sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.20% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on ADP. Morgan Stanley lowered their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 28th. Stifel Nicolaus lowered their target price on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Wells Fargo & Company upgraded shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 target price on the stock in a report on Monday, May 18th. Cantor Fitzgerald lowered their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Finally, Argus lowered their target price on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a report on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of "Hold" and an average target price of $244.29.

Automatic Data Processing Trading Up 0.3%

Shares of ADP stock opened at $231.95 on Friday. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The company has a 50-day simple moving average of $210.02 and a two-hundred day simple moving average of $230.12. The company has a market capitalization of $92.72 billion, a price-to-earnings ratio of 21.64 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) 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 during the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the firm posted $3.06 EPS. The firm's quarterly revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio is presently 63.43%.

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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