Automatic Data Processing, Inc. $ADP Shares Purchased by Northwestern Mutual Wealth Management Co.

Key Points

• Northwestern Mutual Wealth Management Co. increased its holdings in Automatic Data Processing by 3.1%, adding 1,437 shares to its portfolio, bringing its total to 47,816 shares valued at approximately $14.61 million.
• Automatic Data Processing reported a quarterly earnings per share of $2.26, exceeding analysts' estimates of $2.23, with a revenue of $5.13 billion—up 6.3% year-over-year.
• The company announced a quarterly dividend of $1.54 per share, indicating a 2.0% dividend yield and a payout ratio of 61.72%.

Northwestern Mutual Wealth Management Co. grew its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.1% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 47,816 shares of the business services provider's stock after purchasing an additional 1,437 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in Automatic Data Processing were worth $14,610,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of ADP. GAMMA Investing LLC raised its holdings in shares of Automatic Data Processing by 34,655.1% in the 1st quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock valued at $886,345,000 after purchasing an additional 2,892,660 shares in the last quarter. Nuveen LLC bought a new position in shares of Automatic Data Processing during the 1st quarter worth approximately $661,771,000. Northern Trust Corp raised its stake in shares of Automatic Data Processing by 17.1% during the 4th quarter. Northern Trust Corp now owns 6,174,419 shares of the business services provider's stock worth $1,807,438,000 after acquiring an additional 902,354 shares in the last quarter. Mackenzie Financial Corp raised its stake in shares of Automatic Data Processing by 128.1% during the 1st quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock worth $484,480,000 after acquiring an additional 890,440 shares in the last quarter. Finally, Ameriprise Financial Inc. raised its stake in shares of Automatic Data Processing by 15.7% during the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock worth $1,348,805,000 after acquiring an additional 601,400 shares in the last quarter. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

ADP stock traded down $0.05 during trading on Friday, reaching $304.05. The company had a trading volume of 1,106,856 shares, compared to its average volume of 1,470,698. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing, Inc. has a twelve month low of $267.79 and a twelve month high of $329.93. The firm has a 50-day simple moving average of $304.77 and a 200-day simple moving average of $305.53. The company has a market cap of $123.15 billion, a price-to-earnings ratio of 30.47, a price-to-earnings-growth ratio of 2.78 and a beta of 0.81.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, beating the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The business had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same period in the previous year, the business posted $2.09 EPS. The business's quarterly revenue was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be paid a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a yield of 2.0%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is presently 61.72%.

Wall Street Analyst Weigh In

Several analysts have recently commented on ADP shares. Stifel Nicolaus increased their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday, July 31st. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 price objective for the company in a report on Thursday, July 10th. TD Securities increased their price objective on Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a report on Wednesday, May 21st. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Finally, Mizuho increased their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. Two research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, Automatic Data Processing currently has an average rating of "Hold" and a consensus price target of $317.00.

Automatic Data Processing Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.