Morse Asset Management Inc Has $81,000 Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Morse Asset Management cut its position in Automatic Data Processing (ADP) by 95.4% in Q4, selling 6,525 shares and retaining just 316 shares valued at about $81,000.
• ADP beat Q1 estimates with $3.37 EPS (vs. $3.30 expected) and $5.94B revenue, and set FY2026 guidance of $11.01–$11.11 EPS, while analysts’ consensus rating remains a "Hold" with a $253.50 price target.
• The company’s board approved a $6.0 billion share buyback (up to 5.8% of shares) and declared a quarterly dividend of $1.70 ($6.80 annual, ~3.2% yield).

Morse Asset Management Inc decreased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 95.4% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 316 shares of the business services provider's stock after selling 6,525 shares during the quarter. Morse Asset Management Inc's holdings in Automatic Data Processing were worth $81,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Mitchell Capital Management Co. increased its holdings in shares of Automatic Data Processing by 325.0% in the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock valued at $1,996,000 after purchasing an additional 5,200 shares in the last quarter. Atlantic Union Bankshares Corp lifted its holdings in 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 in the last quarter. CIBC Asset Management Inc lifted its holdings in 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 in the last quarter. Thrivent Financial for Lutherans boosted its position in Automatic Data Processing by 18.4% in the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock valued at $40,566,000 after buying an additional 21,444 shares during the last quarter. Finally, Hilltop Holdings Inc. bought a new position in Automatic Data Processing in the 3rd quarter valued at $5,292,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Buying and Selling

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction 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 represents a 6.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated 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 sale, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,809 shares of company stock worth $410,410 over the last ninety days. Company insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ADP. Robert W. Baird dropped their target price on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Stifel Nicolaus decreased their price target on Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. BMO Capital Markets lowered their price objective on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research report on Tuesday, April 7th. JPMorgan Chase & Co. dropped their price objective 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, Cantor Fitzgerald cut their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $253.50.

Automatic Data Processing Price Performance

Shares of ADP opened at $210.60 on Wednesday. The stock has a 50 day simple moving average of $206.59 and a 200 day simple moving average of $237.47. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The firm has a market capitalization of $84.18 billion, a PE ratio of 19.65 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $5.85 billion. During the same period last year, the company posted $3.06 EPS. The business's quarterly revenue was up 7.0% on a year-over-year basis. 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 EPS for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has initiated a share buyback plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is presently 63.43%.

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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