Legal & General Group Plc Sells 206,985 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Legal & General Group Plc reduced its stake in Automatic Data Processing by 7.2% in the fourth quarter, selling 206,985 shares. It still held 2,675,279 shares valued at about $688.2 million at quarter-end.
• ADP beat quarterly expectations, reporting EPS of $3.37 versus the $3.30 consensus and revenue of $5.94 billion versus $5.85 billion expected. The company also raised guidance, with FY 2026 EPS projected at 11.01–11.11.
• The company declared a quarterly dividend of $1.70 per share, payable July 1, which works out to an annualized $6.80 dividend and a 3.0% yield. Shares opened at $225.31, and analysts currently rate the stock a consensus Hold.

Legal & General Group Plc trimmed its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 7.2% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,675,279 shares of the business services provider's stock after selling 206,985 shares during the quarter. Legal & General Group Plc owned 0.66% of Automatic Data Processing worth $688,162,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Imprint Wealth LLC bought a new stake in shares of Automatic Data Processing during the third quarter worth $25,000. Cloud Capital Management LLC bought a new stake in shares of Automatic Data Processing during the third quarter worth $29,000. Y.D. More Investments Ltd bought a new stake in shares of Automatic Data Processing during the third quarter worth $32,000. Board of the Pension Protection Fund bought a new stake in shares of Automatic Data Processing during the fourth quarter worth $31,000. Finally, AlphaQuest LLC bought a new stake in shares of Automatic Data Processing during the third quarter worth $38,000. 80.03% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Stifel Nicolaus decreased their target price on Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. Mizuho decreased their target price on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Citigroup cut their price target on 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 started coverage on Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective for the company. Finally, Wells Fargo & Company upgraded Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price objective for the company in a report on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average target price of $249.00.

Automatic Data Processing Price Performance

ADP opened at $225.31 on Tuesday. The business's 50-day moving average is $206.78 and its two-hundred day moving average is $231.77. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a market capitalization of $90.06 billion, a PE ratio of 21.02 and a beta of 0.83.

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

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 3.0%. Automatic Data Processing's dividend payout ratio is 63.43%.

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 value of $113,188.35. Following the completion of the transaction, the vice president directly owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.20% of the stock is owned by insiders.

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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