Nomura Asset Management Co. Ltd. Has $72.57 Million Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Nomura Asset Management increased its stake in Automatic Data Processing by 2.3% in the fourth quarter, holding 282,110 shares valued at about $72.6 million.
• ADP reported better-than-expected quarterly earnings, posting $3.37 EPS on $5.94 billion in revenue, both above analyst estimates, with revenue rising 7.0% year over year.
• The company declared a quarterly dividend of $1.70 per share, equivalent to an annualized yield of about 3.1%; meanwhile, several analysts trimmed price targets and the stock consensus remains Hold.

Nomura Asset Management Co. Ltd. raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.3% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 282,110 shares of the business services provider's stock after acquiring an additional 6,314 shares during the quarter. Nomura Asset Management Co. Ltd. owned about 0.07% of Automatic Data Processing worth $72,567,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Mitchell Capital Management Co. grew its position in shares of Automatic Data Processing by 325.0% during the 3rd quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock worth $1,996,000 after buying an additional 5,200 shares during the period. Atlantic Union Bankshares Corp grew its position in shares of 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 during the period. Thrivent Financial for Lutherans grew its position in shares of Automatic Data Processing by 18.4% during the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock worth $40,566,000 after buying an additional 21,444 shares during the period. Hilltop Holdings Inc. acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $5,292,000. Finally, Jefferies Financial Group Inc. acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $2,794,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Activity at Automatic Data Processing

In related news, VP Christopher D'ambrosio sold 543 shares of the company's 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 transaction, the vice president directly owned 8,912 shares in the company, 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 SEC, which is accessible through this link. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $221.84 on Friday. 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's fifty day moving average price is $207.63 and its two-hundred day moving average price is $230.93. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $329.93. The company has a market cap of $88.68 billion, a P/E ratio of 20.69 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, beating 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 business had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the company posted $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. Equities analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Announces Dividend

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

Analyst Upgrades and Downgrades

ADP has been the subject of several analyst reports. Citigroup lowered their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Stifel Nicolaus lowered their price target on shares of Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. Jefferies Financial Group cut their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. UBS Group lifted their price target on shares of Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. Finally, Argus cut their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. One equities 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 assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $249.00.

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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