Cetera Investment Advisers Decreases Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Cetera Investment Advisers reduced its stake in ADP by 3.8% in the first quarter, selling 8,289 shares and leaving it with 211,260 shares valued at about $42.9 million.
• ADP reported stronger-than-expected quarterly results, posting $3.37 EPS versus the $3.30 consensus and revenue of $5.94 billion, up 7% year over year.
• Wall Street remains cautious overall on the stock, with a consensus Hold rating and an average price target of $256, even as the shares rose 3% to $250.09.

Cetera Investment Advisers cut its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.8% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 211,260 shares of the business services provider's stock after selling 8,289 shares during the period. Cetera Investment Advisers owned 0.05% of Automatic Data Processing worth $42,924,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently bought and sold shares of the stock. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Automatic Data Processing in the 4th quarter valued at $26,000. Bard Associates Inc. acquired a new position in shares of Automatic Data Processing in the 4th quarter valued at $28,000. Whipplewood Advisors LLC raised its stake in Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after acquiring an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc purchased a new position in Automatic Data Processing in the 4th quarter worth $33,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Up 3.0%

Automatic Data Processing stock opened at $250.09 on Friday. The firm has a market cap of $99.97 billion, a price-to-earnings ratio of 23.33 and a beta of 0.83. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $315.98. The business's 50-day moving average price is $231.61 and its 200 day moving average price is $224.52. 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 (NASDAQ:ADP - Get Free Report) last announced 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. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company had revenue of $5.94 billion during the quarter, compared to analysts' expectations of $5.85 billion. During the same period last year, the business earned $3.06 earnings per share. Automatic Data Processing's quarterly revenue was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 11.08 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Mizuho lowered their price target on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Argus reduced their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Morgan Stanley cut their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 28th. Jefferies Financial Group reduced their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Finally, Weiss Ratings upgraded shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $256.00.

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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