ING Groep NV Sells 208,290 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• ING Groep NV sharply reduced its ADP stake in the fourth quarter, selling 208,290 shares and cutting its position by 76.2% to 65,197 shares valued at about $16.8 million.
• ADP reported stronger-than-expected quarterly results, posting EPS of $3.37 versus the $3.30 estimate and revenue of $5.94 billion, up 7% year over year. The company also issued FY2026 EPS guidance of $11.01 to $11.11.
• ADP declared a quarterly dividend of $1.70 per share, payable July 1, which implies an annualized dividend of $6.80 and a yield of 2.9%. The stock has also drawn mixed analyst views, with a consensus rating of Hold.

ING Groep NV decreased its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 76.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 65,197 shares of the business services provider's stock after selling 208,290 shares during the period. ING Groep NV's holdings in Automatic Data Processing were worth $16,771,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the third quarter worth about $25,000. Board of the Pension Protection Fund bought a new position in shares of Automatic Data Processing in the fourth quarter worth about $31,000. Y.D. More Investments Ltd bought a new position in shares of Automatic Data Processing in the third quarter worth about $32,000. High Point Wealth Management LLC bought a new position in shares of Automatic Data Processing in the fourth quarter worth about $34,000. Finally, AlphaQuest LLC bought a new position in shares of Automatic Data Processing in the third quarter worth about $38,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $231.95 on Monday. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93. The firm's 50-day moving average is $210.02 and its two-hundred day moving average is $229.98. The stock has a market cap of $92.72 billion, a price-to-earnings ratio of 21.64 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. During the same period in the prior year, the business earned $3.06 EPS. The firm's quarterly revenue 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. As a group, research analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.20% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on ADP. Mizuho cut their price target 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 target on the stock in a report on Monday, May 18th. BMO Capital Markets cut their price target 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. Jefferies Financial Group cut their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Finally, Argus cut their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a report on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and a consensus 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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