MUFG Securities EMEA plc Grows Position in Automatic Data Processing, Inc. $ADP

Key Points

• MUFG Securities EMEA plc boosted its ADP stake by 542% in the fourth quarter, ending with 49,774 shares worth about $12.8 million.
• Several analysts have cut price targets on ADP recently, and the stock now carries a consensus "Hold" rating with an average target of $249.
• ADP reported better-than-expected quarterly earnings and revenue, while also announcing a quarterly dividend of $1.70 per share payable July 1, implying a 3.1% yield.

MUFG Securities EMEA plc increased its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 542.0% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 49,774 shares of the business services provider's stock after buying an additional 42,021 shares during the period. MUFG Securities EMEA plc's holdings in Automatic Data Processing were worth $12,803,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in ADP. Brighton Jones LLC increased its stake in shares of Automatic Data Processing by 92.1% during the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock worth $2,935,000 after buying an additional 4,808 shares during the period. Bison Wealth LLC increased its stake in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock worth $1,073,000 after buying an additional 681 shares during the period. Schnieders Capital Management LLC. increased its stake in shares of Automatic Data Processing by 21.8% during the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after buying an additional 225 shares during the period. Osterweis Capital Management Inc. purchased a new stake in shares of Automatic Data Processing during the second quarter worth approximately $108,000. Finally, Diversify Advisory Services LLC increased its stake in shares of Automatic Data Processing by 17.5% during the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock worth $1,641,000 after buying an additional 815 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ADP has been the topic of several recent analyst reports. Mizuho dropped their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Jefferies Financial Group dropped their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Morgan Stanley dropped their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 28th. Wells Fargo & Company upgraded shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price target on the stock in a research note on Monday, May 18th. Finally, Guggenheim initiated coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $249.00.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was 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 of the company's stock, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

ADP stock opened at $221.84 on Monday. The company has a market capitalization of $88.68 billion, a P/E ratio of 20.69 and a beta of 0.84. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $329.93. The business has a 50 day simple moving average of $207.63 and a 200-day simple moving average of $230.77. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63.

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

Automatic Data Processing Announces Dividend

The company 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 $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio 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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