Eurizon SLJ Capital Ltd Takes Position in Automatic Data Processing, Inc. $ADP

Key Points

• Eurizon SLJ Capital opened a new position in Automatic Data Processing, buying 36,215 shares valued at about $9.3 million. The stock now makes up 3.7% of the fund’s portfolio and is its 8th-largest holding.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion, up 7% year over year. The company also reaffirmed FY 2026 guidance of $11.01 to $11.11 in EPS.
• The company declared a quarterly dividend of $1.70 per share, payable July 1, implying a 3.1% annualized yield. Meanwhile, analysts currently have a consensus “Hold” rating on ADP with an average price target of $249.

Eurizon SLJ Capital Ltd purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 36,215 shares of the business services provider's stock, valued at approximately $9,316,000. Automatic Data Processing accounts for approximately 3.7% of Eurizon SLJ Capital Ltd's portfolio, making the stock its 8th biggest holding.

Several other hedge funds and other institutional investors also recently modified their holdings of ADP. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after acquiring an additional 3,415,576 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock valued at $2,004,691,000 after acquiring an additional 2,208,927 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in shares of Automatic Data Processing by 32.1% during the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider's stock valued at $960,831,000 after acquiring an additional 796,379 shares during the period. PFA Pension Forsikringsaktieselskab acquired a new position in shares of Automatic Data Processing during the fourth quarter valued at $139,636,000. Finally, Life Cycle Investment Partners Ltd acquired a new position in shares of Automatic Data Processing during the fourth quarter valued at $136,707,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction dated 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 sale, the vice president directly 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 legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.20% of the company's stock.

Automatic Data Processing Stock Performance

ADP stock opened at $221.84 on Friday. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $329.93. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The company has a market capitalization of $88.68 billion, a P/E ratio of 20.69 and a beta of 0.83. The company has a 50-day simple moving average of $207.63 and a 200 day simple moving average of $230.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly 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. 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 period in the prior year, the company earned $3.06 EPS. Automatic Data Processing's revenue was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts predict that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Analysts Set New Price Targets

Several brokerages have recently issued reports on ADP. Citigroup reduced their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a report on Thursday, April 30th. Robert W. Baird reduced their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Wells Fargo & Company raised shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price objective for the company in a report on Monday, May 18th. Jefferies Financial Group reduced their price objective on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Finally, UBS Group upped their price objective 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. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $249.00.

Automatic Data Processing 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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