Northwestern Mutual Wealth Management Co. Raises Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Northwestern Mutual Wealth Management dramatically increased its stake in Automatic Data Processing, boosting holdings by 6,493% to 3.47 million shares valued at about $892.1 million.
• ADP reported stronger-than-expected quarterly results, posting $3.37 EPS versus $3.30 expected and revenue of $5.94 billion, up 7% year over year. The company also raised FY2026 guidance to 11.01–11.11 EPS.
• The company announced a quarterly dividend of $1.70 per share, payable July 1, implying an annualized yield of about 3.2%. Analyst sentiment remains cautious overall, with a consensus rating of Hold and an average price target of $253.50.

Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6,493.0% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 3,468,180 shares of the business services provider's stock after acquiring an additional 3,415,576 shares during the period. Northwestern Mutual Wealth Management Co. owned approximately 0.86% of Automatic Data Processing worth $892,120,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $25,000. Cloud Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $29,000. Board of the Pension Protection Fund purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth about $31,000. Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the third quarter valued at approximately $32,000. Finally, High Point Wealth Management LLC purchased a new stake in Automatic Data Processing in the fourth quarter valued at approximately $34,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Trading Up 2.9%

Automatic Data Processing stock opened at $214.48 on Friday. 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 stock's 50 day simple moving average is $206.29 and its two-hundred day simple moving average is $233.82. The firm has a market cap 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 EPS for the quarter, topping the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter in the prior year, the firm posted $3.06 EPS. The business's quarterly 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. Analysts anticipate that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio is currently 63.43%.

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 that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 0.20% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on ADP shares. JPMorgan Chase & Co. dropped their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research report on Thursday, January 29th. Citigroup dropped their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research report on Thursday, April 30th. UBS Group upped their target price on Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Cantor Fitzgerald dropped their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. Finally, Jefferies Financial Group dropped their target price on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target 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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