Jefferies Financial Group Inc. Purchases 41,820 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Jefferies Financial Group increased its stake in Automatic Data Processing by 439.2% in the fourth quarter, buying 41,820 additional shares for a total of 51,341 shares valued at about $13.2 million.
• 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% from a year earlier.
• The company declared a quarterly dividend of $1.70 per share, implying an annualized payout of $6.80 and a 3.0% yield. Analysts currently have a consensus rating of Hold with a target price of $249.

Jefferies Financial Group Inc. boosted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 439.2% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 51,341 shares of the business services provider's stock after purchasing an additional 41,820 shares during the period. Jefferies Financial Group Inc.'s holdings in Automatic Data Processing were worth $13,206,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Imprint Wealth LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at about $25,000. Cloud Capital Management LLC bought a new position in Automatic Data Processing in the 3rd quarter worth about $29,000. Y.D. More Investments Ltd bought a new position in Automatic Data Processing in the 3rd quarter worth about $32,000. Board of the Pension Protection Fund bought a new position in Automatic Data Processing in the 4th quarter worth about $31,000. Finally, AlphaQuest LLC bought a new position in Automatic Data Processing in the 3rd quarter worth about $38,000. 80.03% of the stock is currently owned by institutional investors.

Insider Activity at Automatic Data Processing

In related news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.20% of the stock is currently owned by company insiders.

Automatic Data Processing Stock Performance

ADP opened at $225.31 on Monday. 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 firm has a market cap of $90.06 billion, a price-to-earnings ratio of 21.02 and a beta of 0.83. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $329.93. The stock has a fifty day moving average price of $206.43 and a 200-day moving average price of $232.01.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. The company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm's revenue for the quarter was up 7.0% compared to the same quarter last year. During the same quarter last year, the company earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities research analysts anticipate that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company 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 of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. Automatic Data Processing's payout ratio is presently 63.43%.

Wall Street Analyst Weigh In

ADP has been the topic of a number of research analyst reports. BMO Capital Markets dropped their target price on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. TD Cowen upgraded shares of Automatic Data Processing to a "hold" rating in a research note on Monday, May 18th. Citigroup dropped their target price on shares of 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. Guggenheim initiated coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They issued a "buy" rating and a $270.00 target price on the stock. Finally, Jefferies Financial Group dropped their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $249.00.

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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