Dearborn Partners LLC Sells 7,602 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Dearborn Partners LLC cut its stake in Automatic Data Processing by 3.9% in the fourth quarter, selling 7,602 shares and leaving it with 186,218 shares valued at about $47.9 million.
• ADP reported better-than-expected quarterly results, posting EPS of $3.37 on revenue of $5.94 billion, both above estimates, while revenue rose 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, or $6.80 annualized, yielding about 2.9% with a payout ratio of 63.43%.

Dearborn Partners LLC reduced its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.9% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 186,218 shares of the business services provider's stock after selling 7,602 shares during the period. Automatic Data Processing makes up about 2.4% of Dearborn Partners LLC's investment portfolio, making the stock its 4th biggest position. Dearborn Partners LLC's holdings in Automatic Data Processing were worth $47,901,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Imprint Wealth LLC acquired a new stake in Automatic Data Processing in the third quarter worth $25,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing in the third quarter worth $32,000. Board of the Pension Protection Fund acquired a new stake in Automatic Data Processing in the fourth quarter worth $31,000. AlphaQuest LLC acquired a new stake in Automatic Data Processing in the third quarter worth $38,000. Finally, High Point Wealth Management LLC acquired a new stake in Automatic Data Processing in the fourth quarter worth $34,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Stifel Nicolaus cut their target price on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Cantor Fitzgerald cut their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 28th. UBS Group increased their target price on shares of Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. Finally, Argus cut their target price on shares of 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 research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $244.29.

Automatic Data Processing Stock Up 0.3%

Shares of ADP stock opened at $231.95 on Friday. The firm has a fifty day moving average of $210.02 and a 200-day moving average of $230.12. 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, Inc. has a 12-month low of $188.16 and a 12-month high of $329.93. The company has a market capitalization of $92.72 billion, a price-to-earnings ratio of 21.64 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The company had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter in the prior year, the firm earned $3.06 earnings per share. The firm'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, equities research analysts predict that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 2.9%. Automatic Data Processing's dividend payout ratio is currently 63.43%.

Insiders Place Their Bets

In related news, VP Christopher D'ambrosio sold 543 shares of the firm's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares of the company's stock, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company 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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