Franklin Resources Inc. Sells 213,476 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Franklin Resources cut its stake in Automatic Data Processing by 32% in the fourth quarter, selling 213,476 shares and leaving it with 454,307 shares worth about $116.9 million.
• ADP posted stronger-than-expected results for its latest quarter, with earnings per share of $3.37 and revenue of $5.94 billion, both ahead of analyst estimates. Revenue rose 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, payable July 1, which works out to an annualized dividend yield of 2.9%.

Franklin Resources Inc. trimmed its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 32.0% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 454,307 shares of the business services provider's stock after selling 213,476 shares during the quarter. Franklin Resources Inc. owned approximately 0.11% of Automatic Data Processing worth $116,861,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Manchester Capital Management LLC boosted its position in shares of Automatic Data Processing by 22.1% during the 4th quarter. Manchester Capital Management LLC now owns 4,019 shares of the business services provider's stock valued at $1,034,000 after acquiring an additional 728 shares during the last quarter. HFR Wealth Management LLC lifted its position in Automatic Data Processing by 0.7% in the fourth quarter. HFR Wealth Management LLC now owns 48,312 shares of the business services provider's stock worth $12,427,000 after buying an additional 326 shares during the last quarter. Clearbridge Investments LLC lifted its position in Automatic Data Processing by 133.3% in the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after buying an additional 964,405 shares during the last quarter. SouthState Bank Corp lifted its position in Automatic Data Processing by 1.5% in the fourth quarter. SouthState Bank Corp now owns 17,170 shares of the business services provider's stock worth $4,417,000 after buying an additional 253 shares during the last quarter. Finally, Syon Capital LLC increased its stake in Automatic Data Processing by 6.9% in the fourth quarter. Syon Capital LLC now owns 7,175 shares of the business services provider's stock worth $1,846,000 after purchasing an additional 461 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Down 0.0%

Shares of ADP stock opened at $231.10 on Thursday. The stock has a 50 day moving average of $211.62 and a 200 day moving average of $229.57. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The stock has a market cap of $92.38 billion, a P/E ratio of 21.56 and a beta of 0.84. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $315.98.

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 the consensus estimate of $3.30 by $0.07. The company had revenue of $5.94 billion during 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%.Automatic Data Processing's quarterly revenue was up 7.0% on a year-over-year basis. During the same period last year, the business earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, sell-side analysts expect that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.9%. Automatic Data Processing's payout ratio is 63.43%.

Insider Activity at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction that occurred on Monday, March 16th. The stock was 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 in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.20% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Citigroup reduced their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Robert W. Baird lowered their price target on Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Guggenheim began coverage on Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target for the company. Stifel Nicolaus lowered their price target on Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Finally, Morgan Stanley decreased their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a report on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $244.29.

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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