Norges Bank Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Norges Bank initiated a large new stake in Automatic Data Processing, buying 2.81 million shares worth about $721.7 million and ending the quarter with roughly 0.70% ownership.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion, up 7% year over year.
• The company also declared a quarterly dividend of $1.70 per share, payable July 1, for an annualized yield of about 3.1%.

Norges Bank purchased a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 2,805,809 shares of the business services provider's stock, valued at approximately $721,738,000. Norges Bank owned about 0.70% of Automatic Data Processing at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Mitchell Capital Management Co. grew its holdings in shares of Automatic Data Processing by 325.0% during 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 buying an additional 5,200 shares during the last quarter. Atlantic Union Bankshares Corp grew its holdings in shares of Automatic Data Processing by 136.0% during the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider's stock valued at $14,080,000 after buying an additional 27,644 shares during the last quarter. Thrivent Financial for Lutherans grew its holdings in shares of Automatic Data Processing by 18.4% during the third 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. Hilltop Holdings Inc. purchased a new stake in shares of Automatic Data Processing during the third quarter valued at $5,292,000. Finally, Jefferies Financial Group Inc. purchased a new stake in shares of Automatic Data Processing during the third quarter valued at $2,794,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following 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 document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $221.84 on Monday. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year 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 cap of $88.68 billion, a price-to-earnings ratio of 20.69 and a beta of 0.84. The firm's fifty day moving average is $207.63 and its two-hundred day moving average is $230.77.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted 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 company had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period in the prior year, the company earned $3.06 earnings per share. The firm's 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. Research analysts expect that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a 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%.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ADP. Guggenheim began coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective on the stock. Stifel Nicolaus dropped their price objective on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Wells Fargo & Company raised shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price objective on the stock in a report on Monday, May 18th. Argus dropped 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 report on Tuesday, May 5th. Finally, BMO Capital Markets dropped their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a report on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and an average 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.