Eurizon Capital SGR S.p.A. Purchases New Shares in Automatic Data Processing, Inc. $ADP

Key Points

• Eurizon Capital SGR disclosed a new fourth-quarter stake in Automatic Data Processing, buying 138,587 shares worth about $35.7 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus estimates of $3.30 and revenue of $5.94 billion versus $5.85 billion expected.
• The company also declared a quarterly dividend of $1.70 per share, implying an annualized yield of about 3.1%.

Eurizon Capital SGR S.p.A. purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 138,587 shares of the business services provider's stock, valued at approximately $35,685,000.

A number of other institutional investors have also recently bought and sold shares of ADP. Imprint Wealth LLC bought a new position in Automatic Data Processing in the 3rd quarter valued at $25,000. Board of the Pension Protection Fund bought a new position in Automatic Data Processing in the 4th quarter valued at $31,000. Y.D. More Investments Ltd bought a new position in Automatic Data Processing in the 3rd quarter valued at $32,000. High Point Wealth Management LLC bought a new position in Automatic Data Processing in the 4th quarter valued at $34,000. Finally, AlphaQuest LLC bought a new position in Automatic Data Processing in the 3rd quarter valued at $38,000. Institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

ADP has been the subject of a number of recent analyst reports. Morgan Stanley reduced their price objective on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 28th. Citigroup reduced their price objective on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Guggenheim initiated coverage on Automatic Data Processing in a research note on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective for the company. Argus reduced their price objective on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Finally, TD Cowen upgraded Automatic Data Processing to a "hold" rating in a research note on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of "Hold" and an average price target of $249.00.

Automatic Data Processing Stock Performance

Shares of ADP opened at $221.84 on Friday. The stock's 50-day simple moving average is $207.63 and its 200 day simple moving average is $230.93. The stock has a market capitalization of $88.68 billion, a price-to-earnings ratio of 20.69 and a beta of 0.83. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93.

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 analysts' consensus estimates of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm's quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.06 EPS. 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 fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. Automatic Data Processing's dividend payout ratio is 63.43%.

Insider Transactions at Automatic Data Processing

In related news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the sale, the vice president owned 8,912 shares of the company's stock, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the SEC, 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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