Founders Financial Securities LLC Takes Position in Automatic Data Processing, Inc. $ADP

Key Points

• Founders Financial Securities opened a new position in Automatic Data Processing, buying 6,874 shares valued at about $1.77 million in the fourth quarter.
• ADP reported strong quarterly results, with EPS of $3.37 beating estimates and revenue of $5.94 billion topping expectations; the company also raised FY 2026 guidance to $11.01–$11.11 EPS.
• The company declared a quarterly dividend of $1.70 per share, payable July 1, while analysts currently rate the stock a consensus “Hold” with an average price target of $249.

Founders Financial Securities LLC acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 6,874 shares of the business services provider's stock, valued at approximately $1,768,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Mitchell Capital Management Co. raised its stake in Automatic Data Processing by 325.0% in the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock worth $1,996,000 after buying an additional 5,200 shares in the last quarter. Atlantic Union Bankshares Corp raised its stake in Automatic Data Processing by 136.0% in the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider's stock worth $14,080,000 after buying an additional 27,644 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in Automatic Data Processing by 18.4% in the third quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock worth $40,566,000 after buying an additional 21,444 shares in the last quarter. Hilltop Holdings Inc. bought a new position in Automatic Data Processing in the third quarter worth about $5,292,000. Finally, Jefferies Financial Group Inc. bought a new position in Automatic Data Processing in the third quarter worth about $2,794,000. 80.03% of the stock is owned by institutional investors.

Insider Activity at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were 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 in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Price Performance

Shares of ADP opened at $221.84 on Monday. The stock has a market cap of $88.68 billion, a PE ratio of 20.69 and a beta of 0.84. 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 fifty-two week low of $188.16 and a fifty-two week high of $329.93. The firm's 50-day simple moving average is $207.63 and its two-hundred day simple moving average is $230.77.

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 EPS 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 analysts' expectations of $5.85 billion. During the same quarter in the prior year, the company posted $3.06 earnings per share. The business's revenue for the quarter 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 anticipate that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Mizuho cut their price objective on shares of Automatic Data Processing from $332.00 to $305.00 in a report 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 objective on the stock in a report on Monday, May 18th. 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. Guggenheim assumed coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective on the stock. Finally, BMO Capital Markets cut their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a report on Tuesday, April 7th. 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 one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $249.00.

About Automatic Data Processing

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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