Automatic Data Processing, Inc. $ADP Shares Acquired by Compound Planning Inc.

Key Points

• Compound Planning Inc. increased its stake in Automatic Data Processing, Inc. (ADP) by 21.8% in Q1, bringing its total holdings to 4,642 shares valued at approximately $1.42 million as of the latest SEC filing.
• ADP reported a quarterly earnings per share (EPS) of $2.26, exceeding estimates of $2.23, with revenues of $5.13 billion, reflecting a 6.3% increase over the previous year.
• The company declared a quarterly dividend of $1.54, which will be paid to shareholders, representing an annualized dividend yield of 2.0% and a payout ratio of 61.72%.

Compound Planning Inc. raised its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 21.8% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 4,642 shares of the business services provider's stock after purchasing an additional 831 shares during the period. Compound Planning Inc.'s holdings in Automatic Data Processing were worth $1,418,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of ADP. Vanguard Group Inc. increased its position in shares of Automatic Data Processing by 0.5% during the 1st quarter. Vanguard Group Inc. now owns 40,949,884 shares of the business services provider's stock worth $12,511,418,000 after purchasing an additional 218,614 shares during the last quarter. Northern Trust Corp grew its position in Automatic Data Processing by 17.1% in the 4th quarter. Northern Trust Corp now owns 6,174,419 shares of the business services provider's stock valued at $1,807,438,000 after acquiring an additional 902,354 shares in the last quarter. Ameriprise Financial Inc. grew its position in Automatic Data Processing by 15.7% in the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after acquiring an additional 601,400 shares in the last quarter. Invesco Ltd. grew its position in shares of Automatic Data Processing by 3.7% during the first quarter. Invesco Ltd. now owns 4,031,713 shares of the business services provider's stock worth $1,231,809,000 after buying an additional 145,161 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Automatic Data Processing by 16.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,771,011 shares of the business services provider's stock worth $1,103,888,000 after buying an additional 532,485 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock traded down $0.36 during trading hours on Wednesday, hitting $303.09. The stock had a trading volume of 1,077,009 shares, compared to its average volume of 1,724,935. Automatic Data Processing, Inc. has a 1-year low of $267.79 and a 1-year high of $329.93. The stock has a market capitalization of $122.76 billion, a price-to-earnings ratio of 30.37, a PEG ratio of 2.78 and a beta of 0.81. The stock's fifty day moving average is $304.94 and its two-hundred day moving average is $305.58. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, topping the consensus estimate of $2.23 by $0.03. The business had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The business's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be paid a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.0%. 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 analyst reports. Mizuho boosted their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Stifel Nicolaus boosted their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. UBS Group lowered their price target on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a report on Friday, June 13th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, June 5th. Finally, Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. Two research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and a consensus target price of $317.00.

Automatic Data Processing Company Profile

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.