Fairtree Asset Management Pty Ltd Makes New $1.72 Million Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Fairtree Asset Management disclosed a new position in Automatic Data Processing, buying 6,667 shares valued at about $1.72 million in the fourth quarter.
• ADP reported strong quarterly results, with EPS of $3.37 topping estimates and revenue of $5.94 billion beating forecasts, while revenue rose 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, equal to $6.80 annually and a yield of about 3.1%.

Fairtree Asset Management Pty Ltd bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 6,667 shares of the business services provider's stock, valued at approximately $1,715,000.

Other institutional investors also recently modified their holdings of the company. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the third quarter worth about $25,000. Cloud Capital Management LLC bought a new position in shares of Automatic Data Processing in the third quarter worth about $29,000. Y.D. More Investments Ltd bought a new position in shares of Automatic Data Processing in the third quarter worth about $32,000. Board of the Pension Protection Fund bought a new position in shares of Automatic Data Processing in the fourth quarter worth about $31,000. Finally, AlphaQuest LLC bought a new position in shares of Automatic Data Processing in the third quarter worth about $38,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Down 1.1%

Shares of NASDAQ ADP opened at $220.44 on Wednesday. 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. The firm has a 50 day moving average price of $206.17 and a 200 day moving average price of $232.81. The stock has a market cap of $88.12 billion, a P/E ratio of 20.56 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 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 firm had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter in the previous year, the firm posted $3.06 earnings per share. The business'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. Analysts expect that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be paid a $1.70 dividend. 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 payout ratio is presently 63.43%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction that occurred 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 of the company's stock, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.20% of the company's stock.

Key Automatic Data Processing News

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Wells Fargo upgraded ADP to Equal Weight from Underweight, suggesting the recent pullback may have improved the stock’s valuation. The bank set a $214 price target, which still implies some downside from current levels, but the upgrade can help sentiment after the selloff. Automatic Data Processing NASDAQ: ADP Upgraded by Wells Fargo & Company to "Equal Weight" Rating
• Positive Sentiment: ADP’s National Employment Report preliminary estimate showed U.S. private employers added an average of 42,250 jobs per week for the four weeks ending May 2, indicating continued hiring activity that supports demand for payroll and HR services. ADP National Employment Report Preliminary Estimate for May 2, 2026
• Neutral Sentiment: ADP presented at JPMorgan’s Global Technology, Media and Communications Conference, which can provide updates on business trends and outlook, but no major new operating announcement was highlighted in the transcript. Automatic Data Processing, Inc. (ADP) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Negative Sentiment: TD Cowen also moved ADP to Hold, reinforcing a more cautious stance from analysts after the stock’s recent run-up and helping explain the weakness in the shares. Automatic Data Processing was upgraded by TD Cowen to "hold"

Analyst Upgrades and Downgrades

ADP has been the subject of a number of research analyst reports. JPMorgan Chase & Co. dropped their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a research note on Thursday, January 29th. UBS Group boosted their target price on shares of Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Wells Fargo & Company upgraded shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price target for the company in a research report on Monday. Stifel Nicolaus lowered their price target on shares of Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. Finally, Mizuho lowered their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target 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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