EntryPoint Capital LLC Invests $342,000 in Automatic Data Processing, Inc. $ADP

Key Points

• EntryPoint Capital LLC has invested $342,000 to purchase 1,118 shares of Automatic Data Processing, Inc. (NASDAQ:ADP) in the first quarter, indicating growing interest from institutional investors.
• Automatic Data Processing's quarterly earnings surpassed expectations with $2.26 earnings per share and revenue of $5.13 billion, demonstrating a year-over-year revenue growth of 6.3%.
• The company recently announced a dividend of $1.54 per share, expected to be paid on October 1st, representing an annual yield of 2.0% with a payout ratio of 61.72%.

EntryPoint Capital LLC purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 1,118 shares of the business services provider's stock, valued at approximately $342,000.

A number of other hedge funds and other institutional investors also recently bought and sold shares of ADP. Vanguard Group Inc. increased its position in 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 in the last quarter. Northern Trust Corp raised its position in shares of 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 purchasing an additional 902,354 shares in the last quarter. Invesco Ltd. raised its position in shares of Automatic Data Processing by 3.7% in the 1st quarter. Invesco Ltd. now owns 4,031,713 shares of the business services provider's stock valued at $1,231,809,000 after purchasing an additional 145,161 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in shares of Automatic Data Processing by 16.7% in the 4th quarter. Ameriprise Financial Inc. now owns 3,830,078 shares of the business services provider's stock valued at $1,115,909,000 after acquiring an additional 549,132 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Automatic Data Processing by 16.4% during the 4th 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 during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Down 1.3%

NASDAQ ADP opened at $304.94 on Friday. Automatic Data Processing, Inc. has a 52 week low of $267.25 and a 52 week high of $329.93. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $123.51 billion, a P/E ratio of 30.56, a price-to-earnings-growth ratio of 2.83 and a beta of 0.81. The stock has a fifty day moving average of $305.08 and a 200-day moving average of $305.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (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 return on equity of 72.84% and a net margin of 19.84%.The firm's revenue was up 6.3% on a year-over-year basis. During the same period last year, the company earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be issued a dividend of $1.54 per share. The ex-dividend date is Friday, September 12th. This represents a $6.16 annualized dividend and a yield of 2.0%. Automatic Data Processing's payout ratio is currently 61.72%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on ADP shares. Royal Bank Of Canada reissued a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a research note on Thursday, June 5th. Morgan Stanley raised their price target on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Stifel Nicolaus increased their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday, July 31st. BMO Capital Markets raised Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a report on Thursday, July 10th. Finally, UBS Group decreased their target price on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research note on Friday, June 13th. Two investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $317.00.

Automatic Data Processing 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.

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