Ninety One UK Ltd Has $610.95 Million Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Ninety One UK Ltd trimmed its ADP holding by 1.2% in Q4 to 2,375,108 shares worth $610.95 million, representing 0.59% of ADP and 1.3% of the fund's portfolio.
• ADP beat quarterly expectations (EPS $2.62 vs. $2.57), set FY2026 guidance of 10.091–11.011 EPS, and its board authorized a $6.00 billion buyback; the company also declared a $1.70 quarterly dividend (3.4% yield).
• Analysts' consensus is a Hold with an average target of $278.62 after several price-target cuts, while the stock trades near $200 and has a market cap of about $80.7 billion.

Ninety One UK Ltd cut its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 1.2% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 2,375,108 shares of the business services provider's stock after selling 27,843 shares during the quarter. Automatic Data Processing makes up 1.3% of Ninety One UK Ltd's portfolio, making the stock its 22nd largest position. Ninety One UK Ltd owned 0.59% of Automatic Data Processing worth $610,949,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Imprint Wealth LLC acquired a new stake in Automatic Data Processing in the third quarter worth about $25,000. TruNorth Capital Management LLC acquired a new stake in Automatic Data Processing in the third quarter worth about $28,000. Cloud Capital Management LLC acquired a new stake in Automatic Data Processing in the third quarter worth about $29,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing in the third quarter worth about $32,000. Finally, Board of the Pension Protection Fund acquired a new stake in Automatic Data Processing in the fourth quarter worth about $31,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

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 transaction, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,809 shares of company stock worth $410,410 in the last 90 days. Corporate insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

Shares of ADP opened at $200.47 on Friday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93. The stock has a market cap of $80.72 billion, a P/E ratio of 19.28 and a beta of 0.85. The stock's 50-day moving average price is $209.17 and its two-hundred day moving average price is $244.10.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.36 billion for the quarter, compared to analysts' expectations of $5.34 billion. During the same quarter last year, the business earned $2.35 earnings per share. The company's revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, equities analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing declared that its board has authorized a stock buyback plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The firm 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. This represents a $6.80 annualized dividend and a dividend yield of 3.4%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's payout ratio is 65.38%.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Morgan Stanley lowered their price objective on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Thursday, January 29th. Guggenheim assumed 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. Wells Fargo & Company lowered their price objective on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating for the company in a research report on Friday, March 27th. JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a report on Thursday, January 29th. Finally, Stifel Nicolaus reduced their target price on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating on the stock in a report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing currently has an average rating of "Hold" and an average target price 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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