North Dakota State Investment Board Acquires New Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• North Dakota State Investment Board opened a new position in Automatic Data Processing, buying 13,977 shares worth about $3.6 million in the fourth quarter.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 and revenue of $5.94 billion, both above analyst estimates, while revenue rose 7% year over year.
• The company announced a quarterly dividend of $1.70 per share, implying an annualized payout of $6.80 and a dividend yield of about 3.2%.

North Dakota State Investment Board purchased a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 13,977 shares of the business services provider's stock, valued at approximately $3,595,000.

Several other hedge funds have also modified their holdings of the company. Elyxium Wealth LLC purchased a new stake in Automatic Data Processing during the fourth quarter valued at approximately $88,000. Rossmore Private Capital increased its holdings in shares of Automatic Data Processing by 1.3% during the fourth quarter. Rossmore Private Capital now owns 48,783 shares of the business services provider's stock valued at $12,631,000 after acquiring an additional 612 shares in the last quarter. Abacus Wealth Partners LLC purchased a new position in shares of Automatic Data Processing in the 4th quarter valued at approximately $1,019,000. iA Global Asset Management Inc. raised its position in shares of Automatic Data Processing by 7.2% in the 4th quarter. iA Global Asset Management Inc. now owns 50,287 shares of the business services provider's stock valued at $12,935,000 after purchasing an additional 3,384 shares during the last quarter. Finally, Guardian Capital LLC acquired a new stake in Automatic Data Processing in the 4th quarter worth approximately $286,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

ADP opened at $214.48 on Monday. 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, Inc. has a 12-month low of $188.16 and a 12-month high of $329.93. The firm has a 50 day moving average of $206.29 and a two-hundred day moving average of $233.49. The firm has a market capitalization of $85.73 billion, a PE ratio of 20.01 and a beta of 0.83.

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

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders 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 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing's dividend payout ratio is presently 63.43%.

Insider Activity at Automatic Data Processing

In related news, VP Christopher D'ambrosio sold 543 shares of the firm's 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 sale, the vice president directly owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade 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 is available at this hyperlink. 0.20% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ADP. Citigroup cut their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Wells Fargo & Company dropped their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a report on Friday, March 27th. TD Cowen upped their target price on Automatic Data Processing from $208.00 to $216.00 and gave the company a "hold" rating in a research report on Thursday, April 30th. Robert W. Baird reduced their target price on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Finally, UBS Group lifted their price target on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $253.50.

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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