Groupe la Francaise Acquires 1,737 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Groupe la Francaise increased its stake in Automatic Data Processing, Inc. by 11.3% in the first quarter, acquiring an additional 1,737 shares, bringing its total ownership to 17,126 shares valued at approximately $5.23 million.
• Automatic Data Processing reported earnings per share (EPS) of $2.26 for the quarter, surpassing analysts' expectations of $2.23, and achieved a revenue of $5.13 billion.
• The firm has declared a quarterly dividend of $1.54 per share, with the annualized dividend yield standing at 2.0% and a payout ratio of 61.72%.

Groupe la Francaise lifted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 11.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 17,126 shares of the business services provider's stock after purchasing an additional 1,737 shares during the quarter. Groupe la Francaise's holdings in Automatic Data Processing were worth $5,231,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. von Borstel & Associates Inc. acquired a new position in Automatic Data Processing in the 1st quarter valued at $30,000. Main Street Group LTD boosted its holdings in Automatic Data Processing by 50.7% in the 4th quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock valued at $33,000 after purchasing an additional 38 shares during the period. Y.D. More Investments Ltd bought a new stake in Automatic Data Processing in the 1st quarter valued at $35,000. Abound Wealth Management boosted its holdings in Automatic Data Processing by 58.1% in the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock valued at $36,000 after purchasing an additional 43 shares during the period. Finally, Banque de Luxembourg S.A. bought a new stake in Automatic Data Processing in the 4th quarter valued at $37,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Trading Down 0.0%

NASDAQ ADP traded down $0.08 during trading on Friday, reaching $304.02. 235,184 shares of the stock traded hands, compared to its average volume of 1,716,928. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a fifty-two week low of $267.79 and a fifty-two week high of $329.93. The stock's 50-day moving average price is $304.81 and its 200 day moving average price is $305.54. The firm has a market cap of $123.14 billion, a price-to-earnings ratio of 30.45, a price-to-earnings-growth ratio of 2.78 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same quarter in the previous year, the firm posted $2.09 earnings per share. The business's revenue was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be paid a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.0%. Automatic Data Processing's payout ratio is presently 61.72%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Morgan Stanley increased their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price target for the company in a report on Thursday, July 10th. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Stifel Nicolaus raised their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. Finally, UBS Group lowered their price objective on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research report on Friday, June 13th. Two investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $317.00.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.