Clearbridge Investments LLC Purchases 964,405 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Clearbridge Investments increased its stake in Automatic Data Processing by 133.3% in the fourth quarter, buying 964,405 additional shares and bringing its total holding to 1,687,793 shares worth about $434.2 million.
• ADP reported better-than-expected quarterly results, with 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.
• The company declared a quarterly dividend of $1.70 per share, payable July 1, implying an annualized dividend of $6.80 and a yield of 2.9%. Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $244.29.

Clearbridge Investments LLC boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 133.3% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,687,793 shares of the business services provider's stock after acquiring an additional 964,405 shares during the quarter. Clearbridge Investments LLC owned 0.42% of Automatic Data Processing worth $434,151,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in ADP. Brighton Jones LLC raised its position in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock worth $2,935,000 after purchasing an additional 4,808 shares during the last quarter. Bison Wealth LLC raised its position in Automatic Data Processing by 22.8% during the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after purchasing an additional 681 shares during the last quarter. Schnieders Capital Management LLC. raised its position in Automatic Data Processing by 21.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after purchasing an additional 225 shares during the last quarter. Osterweis Capital Management Inc. bought a new position in Automatic Data Processing during the 2nd quarter worth $108,000. Finally, Diversify Advisory Services LLC raised its position in Automatic Data Processing by 17.5% during the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock worth $1,641,000 after purchasing an additional 815 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $231.95 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 business has a 50-day moving average price of $210.02 and a two-hundred day moving average price of $230.12. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93. The company has a market cap of $92.72 billion, a P/E ratio of 21.64 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates 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 firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same period last year, the business posted $3.06 EPS. The business's 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. As a group, analysts anticipate that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Dividend Announcement

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

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Guggenheim assumed coverage on Automatic Data Processing in a research report on Thursday, March 19th. They set a "buy" rating and a $270.00 target price for the company. UBS Group raised their target price on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research report on Thursday, April 30th. Citigroup lowered their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Cantor Fitzgerald lowered their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a research report on Wednesday, April 29th. Finally, BMO Capital Markets lowered their target price on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research report on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and an average target price of $244.29.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction dated Monday, March 16th. The stock was 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 in the company, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.20% of the company's stock.

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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