Compass Capital Management Inc. Has $52.40 Million Stock Position in Automatic Data Processing, Inc. $ADP

Key Points

• Compass Capital Management boosted its stake in Automatic Data Processing by 3.0% in the fourth quarter, ending with 203,710 shares valued at about $52.4 million. ADP now represents 2.9% of the firm’s portfolio.
• Other institutions also increased holdings, and 80.03% of ADP stock is owned by institutional investors and hedge funds. Analysts currently have a consensus "Hold" rating on the stock, with an average price target of $244.29.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 and revenue of $5.94 billion, both ahead of estimates. The company also declared a $1.70 quarterly dividend payable July 1, implying a 3.0% yield.

Compass Capital Management Inc. increased its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 203,710 shares of the business services provider's stock after purchasing an additional 5,899 shares during the quarter. Automatic Data Processing makes up 2.9% of Compass Capital Management Inc.'s portfolio, making the stock its 23rd biggest position. Compass Capital Management Inc. owned 0.05% of Automatic Data Processing worth $52,400,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of the stock. ICICI Prudential Asset Management Co Ltd grew its position in shares of Automatic Data Processing by 4.4% during the 4th quarter. ICICI Prudential Asset Management Co Ltd now owns 6,491 shares of the business services provider's stock worth $1,670,000 after buying an additional 271 shares during the period. William Allan Corp grew its position in shares of Automatic Data Processing by 19.4% during the 4th quarter. William Allan Corp now owns 24,818 shares of the business services provider's stock worth $6,384,000 after buying an additional 4,028 shares during the period. Xponance LLC grew its position in shares of Automatic Data Processing by 8.4% during the 4th quarter. Xponance LLC now owns 110,246 shares of the business services provider's stock worth $28,359,000 after buying an additional 8,583 shares during the period. UniSuper Management Pty Ltd grew its position in shares of Automatic Data Processing by 0.6% during the 4th quarter. UniSuper Management Pty Ltd now owns 88,064 shares of the business services provider's stock worth $22,653,000 after buying an additional 521 shares during the period. Finally, IFM Investors Pty Ltd grew its position in shares of Automatic Data Processing by 1.6% during the 4th quarter. IFM Investors Pty Ltd now owns 77,778 shares of the business services provider's stock worth $20,007,000 after buying an additional 1,214 shares during the period. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on ADP shares. Cantor Fitzgerald decreased 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. Guggenheim started 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. Jefferies Financial Group decreased their target price on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Morgan Stanley decreased their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 28th. Finally, Argus cut their price objective on 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 analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $244.29.

Automatic Data Processing Trading Down 2.3%

NASDAQ:ADP opened at $225.77 on Friday. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $315.98. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The stock has a market capitalization of $90.25 billion, a PE ratio of 21.06 and a beta of 0.84. The business's 50-day simple moving average is $212.08 and its 200-day simple moving average is $229.38.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data 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 business had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. During the same quarter in the previous year, the business posted $3.06 EPS. Automatic Data Processing's revenue for the quarter 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. Sell-side analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's payout ratio is 63.43%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing 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 transaction, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.20% of the stock is owned by company insiders.

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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