J. Safra Sarasin Holding AG Raises Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• J. Safra Sarasin Holding AG increased its stake in Automatic Data Processing (ADP) by 3.3% to 243,681 shares (about $62.7M), while institutional investors and hedge funds collectively own roughly 80% of ADP.
• ADP beat Q4 estimates with EPS of $2.62 (vs. $2.57 expected) and revenue of $5.36B (vs. $5.34B), with revenue up 6.2% year-over-year and FY2026 EPS guidance set at 10.091–11.011.
• The company announced a quarterly dividend of $1.70 per share (annualized $6.80, ~3.3% yield) and authorized a $6.0B share repurchase program (about 5.8% of outstanding shares).

J. Safra Sarasin Holding AG boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.3% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 243,681 shares of the business services provider's stock after acquiring an additional 7,723 shares during the quarter. Automatic Data Processing comprises 1.0% of J. Safra Sarasin Holding AG's holdings, making the stock its 27th largest holding. J. Safra Sarasin Holding AG owned approximately 0.06% of Automatic Data Processing worth $62,682,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. PGIM Custom Harvest LLC lifted its stake in shares of Automatic Data Processing by 4.9% in the 2nd quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider's stock valued at $223,000 after purchasing an additional 34 shares during the last quarter. Heritage Wealth Management Inc. increased its position in shares of Automatic Data Processing by 1.1% during the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider's stock worth $1,030,000 after purchasing an additional 35 shares during the last quarter. Fairvoy Private Wealth LLC raised its holdings in Automatic Data Processing by 4.2% in the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider's stock valued at $253,000 after buying an additional 35 shares during the period. Central Pacific Bank Trust Division raised its holdings in Automatic Data Processing by 4.3% in the 3rd quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider's stock valued at $261,000 after buying an additional 37 shares during the period. Finally, Baker Tilly Wealth Management LLC lifted its position in Automatic Data Processing by 2.7% in the third quarter. Baker Tilly Wealth Management LLC now owns 1,431 shares of the business services provider's stock valued at $420,000 after buying an additional 38 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $205.47 on Tuesday. The stock has a market capitalization of $82.73 billion, a price-to-earnings ratio of 19.76 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The business has a 50-day moving average of $222.65 and a 200 day moving average of $252.45. Automatic Data Processing, Inc. has a 12 month low of $198.59 and a 12 month high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing's dividend payout ratio is presently 65.38%.

Automatic Data Processing announced that its board has initiated a share repurchase plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several brokerages have weighed in on ADP. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an "overweight" rating and a $306.00 target price for the company. JPMorgan Chase & Co. reduced their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research note on Thursday, January 29th. Wells Fargo & Company decreased their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a report on Friday. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Guggenheim began coverage on Automatic Data Processing in a research report on Thursday, March 19th. They issued a "buy" rating and a $270.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $284.77.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction 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 sale, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Kwon sold 806 shares of Automatic Data Processing stock in a transaction on Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the transaction, the vice president owned 11,187 shares of the company's stock, valued at approximately $2,962,317.60. This trade represents a 6.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 4,058 shares of company stock valued at $1,000,263 in the last quarter. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing 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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