Geode Capital Management LLC Buys 136,876 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Geode Capital Management increased its stake in Automatic Data Processing by 1.2% in the fourth quarter, buying 136,876 shares and bringing its total holding to 11.58 million shares worth about $2.98 billion.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion versus $5.85 billion expected. Revenue rose 7% year over year, and the company reiterated FY2026 EPS guidance of $11.01 to $11.11.
• The company announced a quarterly dividend of $1.70 per share, or $6.80 annually, implying a 3.1% yield. However, several analysts trimmed price targets, and the stock currently carries an average Hold rating with a $249 target price.

Geode Capital Management LLC grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 11,576,572 shares of the business services provider's stock after buying an additional 136,876 shares during the period. Geode Capital Management LLC owned approximately 2.88% of Automatic Data Processing worth $2,977,777,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Imprint Wealth LLC bought a new position in Automatic Data Processing during the third quarter worth about $25,000. Cloud Capital Management LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth about $29,000. Board of the Pension Protection Fund acquired a new stake in shares of Automatic Data Processing during the fourth quarter worth about $31,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing during the third quarter worth about $32,000. Finally, High Point Wealth Management LLC acquired a new stake in shares of Automatic Data Processing during the fourth quarter worth about $34,000. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Down 0.3%

Shares of Automatic Data Processing stock opened at $217.65 on Thursday. The business's 50 day simple moving average is $207.15 and its 200 day simple moving average is $231.24. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The firm has a market cap of $87.00 billion, a PE ratio of 20.30 and a beta of 0.83. 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 announced its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter last year, the firm earned $3.06 EPS. Automatic Data Processing's revenue for the quarter was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, analysts predict that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 63.43%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the firm'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 transaction, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.20% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Mizuho dropped their price target on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Citigroup dropped their price target on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research report on Thursday, April 30th. BMO Capital Markets dropped their price target on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research report on Tuesday, April 7th. Robert W. Baird dropped their price target on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Finally, Cantor Fitzgerald dropped their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company 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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