Fifth Third Bancorp Raises Position in Automatic Data Processing, Inc. $ADP

Key Points

• Fifth Third Bancorp increased its stake in Automatic Data Processing by 78.4% in the first quarter, bringing its holdings to 528,587 shares worth about $107.4 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus estimates of $3.30 and revenue of $5.94 billion, up 7% year over year.
• Analyst sentiment remains cautious overall: ADP has an average “Hold” rating, and the consensus price target is $248.64, while several firms recently lowered their targets.

Fifth Third Bancorp boosted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 78.4% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 528,587 shares of the business services provider's stock after buying an additional 232,359 shares during the period. Fifth Third Bancorp owned 0.13% of Automatic Data Processing worth $107,398,000 at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in the company. Imprint Wealth LLC acquired a new position in Automatic Data Processing in the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new position in Automatic Data Processing in the 4th quarter valued at $26,000. Bard Associates Inc. acquired a new stake in Automatic Data Processing during the 4th quarter worth $28,000. Whipplewood Advisors LLC grew its holdings in shares of Automatic Data Processing by 2,740.0% during the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after buying an additional 137 shares in the last quarter. Finally, Board of the Pension Protection Fund purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth $31,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Trading Up 0.3%

Shares of NASDAQ ADP traded up $0.64 during mid-day trading on Friday, reaching $241.92. 1,243,041 shares of the company's stock were exchanged, compared to its average volume of 2,717,334. The company's 50-day moving average is $224.00 and its 200-day moving average is $225.10. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The firm has a market capitalization of $96.70 billion, a price-to-earnings ratio of 22.57 and a beta of 0.83. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98.

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, beating the consensus estimate of $3.30 by $0.07. The firm had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. Automatic Data Processing's revenue was up 7.0% on a year-over-year basis. During the same period in the previous year, the firm earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Analysts expect that Automatic Data Processing, Inc. will post 11.08 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have recently weighed in on ADP shares. Weiss Ratings reissued a "hold (c-)" rating on shares of Automatic Data Processing in a research note on Tuesday. Robert W. Baird cut their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Guggenheim assumed coverage on Automatic Data Processing in a research note on Thursday, March 19th. They issued a "buy" rating and a $270.00 target price for the company. 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. Finally, Morgan Stanley cut their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average target price of $248.64.

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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