Dimensional Fund Advisors LP Acquires 10,700 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Dimensional Fund Advisors LP increased its stake in Automatic Data Processing by 10,700 shares in the first quarter, bringing its total holding to 2,413,934 shares worth about $490.5 million.
• ADP reported better-than-expected quarterly results, with earnings per share of $3.37 versus $3.30 expected and revenue of $5.94 billion versus $5.85 billion expected. Revenue rose 7.0% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $248.64, even as some firms adjusted targets and one analyst maintains a Strong Buy.

Dimensional Fund Advisors LP increased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 0.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,413,934 shares of the business services provider's stock after acquiring an additional 10,700 shares during the quarter. Dimensional Fund Advisors LP owned about 0.60% of Automatic Data Processing worth $490,530,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the business. Imprint Wealth LLC bought a new position in Automatic Data Processing during the third quarter worth $25,000. Cornerstone Financial Management LLC bought a new position in shares of Automatic Data Processing in the fourth quarter valued at about $26,000. Bard Associates Inc. bought a new position in shares of Automatic Data Processing in the fourth quarter valued at about $28,000. Whipplewood Advisors LLC lifted its stake in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after buying an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth about $33,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $255.24 on Tuesday. The stock has a market capitalization of $102.03 billion, a PE ratio of 23.81 and a beta of 0.83. 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 business has a fifty day moving average price of $228.87 and a two-hundred day moving average price of $224.58. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $315.98.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company's revenue was up 7.0% compared to the same quarter last year. During the same period in the prior year, the company posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities analysts predict that Automatic Data Processing, Inc. will post 11.08 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts recently commented on the stock. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Automatic Data Processing in a report on Tuesday, July 7th. Citigroup lowered their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a report on Thursday, April 30th. Mizuho cut their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Robert W. Baird reduced their price objective on Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Finally, UBS Group upped their target price on Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and an average price target of $248.64.

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.

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