&PARTNERS Grows Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• &PARTNERS increased its stake in ADP by 7.7% in the fourth quarter, buying 20,423 additional shares and bringing its total holdings to 284,299 shares valued at about $73 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus estimates of $3.30 and revenue of $5.94 billion, up 7% year over year. The company also raised its FY2026 EPS guidance to 11.01-11.11.
• ADP announced a quarterly dividend of $1.70 per share, equal to $6.80 annually and a 3.1% yield. Meanwhile, analysts remain cautious overall, with a consensus rating of “Hold” and an average price target of $244.29.

&PARTNERS boosted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 7.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 284,299 shares of the business services provider's stock after buying an additional 20,423 shares during the period. &PARTNERS owned approximately 0.07% of Automatic Data Processing worth $72,999,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also bought and sold shares of the business. Northcape Wealth Management LLC grew its stake in Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock valued at $1,692,000 after buying an additional 39 shares in the last quarter. Private Advisory Group LLC grew its stake in Automatic Data Processing by 4.8% in the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider's stock valued at $254,000 after buying an additional 40 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC grew its stake in Automatic Data Processing by 0.3% in the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider's stock valued at $4,455,000 after buying an additional 41 shares in the last quarter. Rathbones Group PLC grew its stake in Automatic Data Processing by 1.1% in the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock valued at $1,036,000 after buying an additional 42 shares in the last quarter. Finally, Zullo Investment Group Inc. boosted its holdings in Automatic Data Processing by 2.3% in the 4th quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider's stock valued at $485,000 after purchasing an additional 42 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $222.00 on Wednesday. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98. 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 company has a market capitalization of $88.74 billion, a P/E ratio of 20.71 and a beta of 0.84. The company has a fifty day moving average of $213.32 and a 200-day moving average of $228.75.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the previous year, the firm posted $3.06 EPS. The firm'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. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's payout ratio is currently 63.43%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Stifel Nicolaus cut their price target on shares of Automatic Data Processing from $270.00 to $240.00 in a 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 report on Thursday, April 30th. Argus cut their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a report on Tuesday, May 5th. Guggenheim assumed coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target for the company. Finally, Morgan Stanley cut their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a report on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing presently has an average rating of "Hold" and a consensus target price of $244.29.

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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