DNB Asset Management AS Has $39.28 Million Position in Automatic Data Processing, Inc. $ADP

Key Points

• DNB Asset Management AS increased its ADP stake by 11.1% in the fourth quarter, adding 15,287 shares and bringing its position to 152,697 shares worth about $39.3 million.
• Analysts are mixed on Automatic Data Processing: several firms recently lowered price targets, and the stock currently carries a consensus Hold rating with an average target price of $253.50.
• ADP reported solid quarterly results and raised its dividend, beating EPS and revenue estimates for the quarter and announcing a $1.70 quarterly dividend, equal to a 3.2% annualized yield.

DNB Asset Management AS grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 11.1% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 152,697 shares of the business services provider's stock after acquiring an additional 15,287 shares during the period. DNB Asset Management AS's holdings in Automatic Data Processing were worth $39,278,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of ADP. Coston McIsaac & Partners boosted its position in Automatic Data Processing by 13.2% during the third quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider's stock valued at $98,000 after purchasing an additional 39 shares during the last quarter. Northcape Wealth Management LLC increased its position in Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock worth $1,692,000 after purchasing an additional 39 shares during the last quarter. Private Advisory Group LLC raised its stake in shares of Automatic Data Processing by 4.8% during the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider's stock worth $254,000 after purchasing an additional 40 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC lifted its holdings in shares of Automatic Data Processing by 0.3% during the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider's stock valued at $4,455,000 after buying an additional 41 shares during the last quarter. Finally, Rathbones Group PLC lifted its holdings in shares of Automatic Data Processing by 1.1% during the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock valued at $1,036,000 after buying an additional 42 shares during the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Cantor Fitzgerald dropped their price objective on 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 decreased their target price on shares of 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. Jefferies Financial Group dropped their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a report on Thursday, January 29th. Finally, Wells Fargo & Company reduced their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating for the company in a research note on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $253.50.

Insider Buying and Selling

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

Automatic Data Processing Stock Up 2.9%

ADP opened at $214.48 on Friday. The business has a 50 day moving average price of $206.29 and a 200 day moving average price of $233.82. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $329.93. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The firm has a market cap of $85.73 billion, a P/E ratio of 20.01 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS 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 company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter last year, the company posted $3.06 earnings per share. The company's revenue for the quarter 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. Research analysts forecast that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be paid a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.2%. Automatic Data Processing's dividend payout ratio (DPR) is presently 63.43%.

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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