D.A. Davidson & CO. Boosts Stake in Automatic Data Processing, Inc. $ADP

Key Points

• D.A. Davidson & Co. increased its stake in Automatic Data Processing by 15% in the first quarter, bringing its holdings to 434,698 shares valued at about $88.3 million.
• Institutional interest in ADP remains high, with hedge funds and other investors owning 80.03% of the company’s stock.
• ADP reported better-than-expected quarterly results, posting EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion, while also reaffirming FY2026 EPS guidance of $11.01-$11.11.

D.A. Davidson & CO. increased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 15.0% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 434,698 shares of the business services provider's stock after purchasing an additional 56,836 shares during the quarter. D.A. Davidson & CO. owned 0.11% of Automatic Data Processing worth $88,322,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently bought and sold shares of ADP. Northwestern Mutual Wealth Management Co. raised its stake in shares of Automatic Data Processing by 6,493.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after acquiring an additional 3,415,576 shares during the period. Cardano Risk Management B.V. raised its position in Automatic Data Processing by 950.1% in the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after purchasing an additional 3,223,855 shares during the period. Norges Bank purchased a new position in Automatic Data Processing in the fourth quarter valued at about $721,738,000. Clearbridge Investments LLC lifted its stake in shares of Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after purchasing an additional 964,405 shares in the last quarter. Finally, Wellington Management Group LLP boosted its position in shares of Automatic Data Processing by 8.0% in the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider's stock worth $1,896,944,000 after buying an additional 544,210 shares during the period. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Guggenheim began coverage on Automatic Data Processing in a report on Thursday, March 19th. They set a "buy" rating and a $270.00 target price on the stock. Argus dropped their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Jefferies Financial Group reduced their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. BMO Capital Markets dropped their price target on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. Finally, Robert W. Baird cut their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, two have issued 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, Automatic Data Processing has an average rating of "Hold" and a consensus price target of $248.64.

Automatic Data Processing Stock Performance

Shares of ADP opened at $247.47 on Thursday. The firm has a market cap of $98.92 billion, a price-to-earnings ratio of 23.08 and a beta of 0.83. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The business's 50 day moving average is $226.31 and its two-hundred day moving average is $224.66. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98.

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 (EPS) for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. The business had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The business's revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Analysts forecast that Automatic Data Processing, Inc. will post 11.08 EPS for the current fiscal year.

About Automatic Data Processing

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.