Junto Capital Management LP Has $51.41 Million Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Junto Capital Management LP increased its stake in Automatic Data Processing, Inc. by 71.3%, holding 168,250 shares valued at approximately $51.4 million by the end of the first quarter.
• Automatic Data Processing's recent earnings beat estimates, reporting $2.26 per share on revenue of $5.13 billion, reflecting a 6.3% year-over-year increase.
• The company announced a quarterly dividend of $1.54 per share, equating to an annualized yield of 2.0%, with the ex-dividend date set for September 12th.

Junto Capital Management LP lifted its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 71.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 168,250 shares of the business services provider's stock after buying an additional 70,026 shares during the quarter. Automatic Data Processing comprises approximately 1.1% of Junto Capital Management LP's holdings, making the stock its 29th biggest position. Junto Capital Management LP's holdings in Automatic Data Processing were worth $51,405,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Pinnacle Wealth Planning Services Inc. grew its stake in shares of Automatic Data Processing by 5.3% in the first quarter. Pinnacle Wealth Planning Services Inc. now owns 1,615 shares of the business services provider's stock valued at $493,000 after buying an additional 81 shares in the last quarter. Activest Wealth Management grew its stake in shares of Automatic Data Processing by 2,600.0% in the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after buying an additional 78 shares in the last quarter. Vident Advisory LLC grew its stake in shares of Automatic Data Processing by 119.6% in the first quarter. Vident Advisory LLC now owns 77,616 shares of the business services provider's stock valued at $23,715,000 after buying an additional 42,268 shares in the last quarter. Kodai Capital Management LP bought a new position in shares of Automatic Data Processing in the first quarter valued at $3,244,000. Finally, WPG Advisers LLC bought a new position in shares of Automatic Data Processing in the first quarter valued at $93,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Price Performance

ADP traded down $0.91 on Wednesday, hitting $298.86. 1,447,214 shares of the stock were exchanged, compared to its average volume of 1,720,191. Automatic Data Processing, Inc. has a 12 month low of $267.79 and a 12 month high of $329.93. The business has a 50-day moving average of $304.41 and a two-hundred day moving average of $305.42. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a market capitalization of $121.05 billion, a price-to-earnings ratio of 29.95, a PEG ratio of 2.78 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the prior year, the business posted $2.09 earnings per share. Automatic Data Processing's revenue was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a yield of 2.1%. Automatic Data Processing's dividend payout ratio is currently 61.72%.

Wall Street Analyst Weigh In

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

About Automatic Data Processing

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.