F m Investments LLC Has $858,000 Position in Automatic Data Processing, Inc. $ADP

Key Points

• F m Investments LLC cut its Automatic Data Processing stake by 81.3% in the fourth quarter, leaving it with 3,337 shares worth about $858,000.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 and revenue of $5.94 billion, both above analyst estimates, while revenue rose 7% year over year.
• The company announced a $6 billion share buyback and a quarterly dividend of $1.70 per share (3.2% yield), while analysts currently rate the stock a consensus Hold with a $253.50 target price.

F m Investments LLC lowered its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 81.3% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,337 shares of the business services provider's stock after selling 14,476 shares during the quarter. F m Investments LLC's holdings in Automatic Data Processing were worth $858,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently made changes to their positions in the company. CGC Financial Services LLC increased its stake in shares of Automatic Data Processing by 13.7% in the third quarter. CGC Financial Services LLC now owns 323 shares of the business services provider's stock valued at $95,000 after buying an additional 39 shares during the period. Coston McIsaac & Partners increased its stake in shares of Automatic Data Processing by 13.2% in the third quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider's stock valued at $98,000 after buying an additional 39 shares during the period. Northcape Wealth Management LLC increased its stake in shares of Automatic Data Processing by 0.6% in the fourth quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock valued at $1,692,000 after buying an additional 39 shares during the period. Private Advisory Group LLC increased its stake in shares of Automatic Data Processing by 4.8% in the third quarter. Private Advisory Group LLC now owns 867 shares of the business services provider's stock valued at $254,000 after buying an additional 40 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC boosted its holdings in Automatic Data Processing by 0.3% in the third 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 acquiring an additional 41 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $212.99 on Monday. The stock has a market capitalization of $85.14 billion, a price-to-earnings ratio of 19.87 and a beta of 0.83. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The stock's 50 day moving average price is $206.79 and its two-hundred day moving average price is $236.48. 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 (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results 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 firm 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 company's revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period in the prior year, the business earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts predict that Automatic Data Processing, Inc. will post 11.06 earnings per share for the current year.

Automatic Data Processing declared that its Board of Directors has authorized a share repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Automatic Data Processing Announces Dividend

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 dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio is presently 63.43%.

Insider Activity

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.20% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on ADP shares. Guggenheim started coverage on Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 target price on the stock. Stifel Nicolaus reduced their target price on Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Jefferies Financial Group reduced their target price on Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Wells Fargo & Company reduced their target price on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a report on Friday, March 27th. Finally, Cantor Fitzgerald reduced their target price 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. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $253.50.

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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