Lombard Odier Asset Management Switzerland SA Boosts Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Lombard Odier Asset Management Switzerland SA increased its stake in Automatic Data Processing by 86.6% in the fourth quarter, ending with 18,945 shares valued at about $4.87 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus estimates of $3.30 and revenue of $5.94 billion, up 7.0% year over year.
• The company declared a quarterly dividend of $1.70 per share and maintained FY2026 EPS guidance of 11.01 to 11.11, while analysts currently rate the stock a consensus Hold with a $244.29 price target.

Lombard Odier Asset Management Switzerland SA raised its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 86.6% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 18,945 shares of the business services provider's stock after acquiring an additional 8,792 shares during the quarter. Lombard Odier Asset Management Switzerland SA's holdings in Automatic Data Processing were worth $4,873,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. increased its position in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock worth $892,120,000 after buying an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. increased its position in Automatic Data Processing by 950.1% during the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock worth $916,557,000 after buying an additional 3,223,855 shares in the last quarter. Norges Bank purchased a new position in Automatic Data Processing during the fourth quarter worth $721,738,000. Wellington Management Group LLP increased its position in Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock worth $2,004,691,000 after buying an additional 2,208,927 shares in the last quarter. Finally, Clearbridge Investments LLC increased its position in Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after buying an additional 964,405 shares in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $222.00 on Wednesday. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $315.98. The firm has a 50 day moving average price of $213.32 and a 200 day moving average price of $228.75. The company has a market cap of $88.74 billion, a price-to-earnings ratio of 20.71 and a beta of 0.84. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the previous year, the firm earned $3.06 earnings per share. Automatic Data Processing's 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. Sell-side analysts predict that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's payout ratio is 63.43%.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of recent research reports. Morgan Stanley lowered their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a report on Tuesday, April 28th. TD Cowen upgraded shares of Automatic Data Processing to a "hold" rating in a report on Monday, May 18th. Mizuho lowered their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Guggenheim started coverage on Automatic Data Processing in a research report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective for the company. Finally, Argus lowered their price objective on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and a consensus price target of $244.29.

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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