KBC Group NV Boosts Stake in Automatic Data Processing, Inc. $ADP

Key Points

• KBC Group NV boosted its stake in Automatic Data Processing (NASDAQ:ADP) by 12.3%, buying 17,775 shares to hold 161,856 shares valued at $41.635 million.
• ADP beat Q results (EPS $2.62 vs. $2.57 est., revenue $5.36B vs. $5.34B est.), set FY2026 guidance of 10.091–11.011 EPS, and its board authorized a $6.0 billion buyback while declaring a $1.70 quarterly dividend (annualized yield ~3.4%).
• The stock has ~80% institutional ownership, a market cap of ~$80.7B and a P/E of ~19.3, and Wall Street's consensus is an average "Hold" rating with a $278.62 price target.

KBC Group NV boosted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 12.3% during the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 161,856 shares of the business services provider's stock after buying an additional 17,775 shares during the quarter. KBC Group NV's holdings in Automatic Data Processing were worth $41,635,000 as of its most recent filing with the SEC.

A number of other large investors also recently made changes to their positions in the business. Exchange Traded Concepts LLC increased its holdings in shares of Automatic Data Processing by 141.5% during the 3rd quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider's stock worth $3,899,000 after buying an additional 7,782 shares during the last quarter. Mitchell Capital Management Co. increased its holdings in shares of Automatic Data Processing by 325.0% during the 3rd quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock worth $1,996,000 after buying an additional 5,200 shares during the last quarter. Atlantic Union Bankshares Corp increased its holdings in shares of Automatic Data Processing by 136.0% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider's stock worth $14,080,000 after buying an additional 27,644 shares during the last quarter. CIBC Asset Management Inc increased its holdings in shares of Automatic Data Processing by 2.6% during the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider's stock worth $53,875,000 after buying an additional 4,720 shares during the last quarter. Finally, Thrivent Financial for Lutherans increased its holdings in shares of Automatic Data Processing by 18.4% during the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock worth $40,566,000 after buying an additional 21,444 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Up 1.8%

Shares of NASDAQ ADP opened at $200.39 on Friday. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $329.93. The company has a market cap of $80.69 billion, a P/E ratio of 19.27 and a beta of 0.85. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The stock has a fifty day moving average price of $209.78 and a 200 day moving average price of $244.74.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. The business had revenue of $5.36 billion for the quarter, compared to analysts' expectations 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 previous year, the company posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its board has approved a stock buyback program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.4%. Automatic Data Processing's payout ratio is currently 65.38%.

Insiders Place Their Bets

In other news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the sale, the vice president directly owned 8,912 shares of the company's stock, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,809 shares of company stock worth $410,410 in the last quarter. 0.20% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an "overweight" rating and a $306.00 price objective for the company. Guggenheim assumed coverage on Automatic Data Processing in a report on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective for the company. Stifel Nicolaus dropped their price objective on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a report on Monday, February 9th. JPMorgan Chase & Co. lowered their price target on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a report on Thursday, January 29th. Finally, Citigroup lowered their price target on Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating for the company in a report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Automatic Data Processing presently has an average rating of "Hold" and an average price target of $278.62.

About Automatic Data Processing

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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