Principal Financial Group Inc. Has $128.31 Million Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Principal Financial Group increased its stake in Automatic Data Processing to 498,823 shares worth $128.31 million (a 2.3% rise during Q4), representing roughly 0.12% of the company.
• ADP beat Q1 estimates with $3.37 EPS and $5.94B revenue, issued FY2026 guidance of $11.01–$11.11 EPS, and announced a quarterly dividend of $1.70 (annualized $6.80, 3.3% yield) plus a $6.0 billion share buyback authorization.
• Analyst sentiment is mixed: the consensus rating is "Hold" with an average price target of $253.50, and several firms recently cut price targets (e.g., JPMorgan, Argus) despite some buy/hold ratings remaining.

Principal Financial Group Inc. grew its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.3% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 498,823 shares of the business services provider's stock after purchasing an additional 11,399 shares during the quarter. Principal Financial Group Inc. owned approximately 0.12% of Automatic Data Processing worth $128,312,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Mitchell Capital Management Co. lifted its stake in Automatic Data Processing by 325.0% in 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 period. Atlantic Union Bankshares Corp increased its stake in shares of Automatic Data Processing by 136.0% in the 3rd quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider's stock valued at $14,080,000 after acquiring an additional 27,644 shares during the last quarter. CIBC Asset Management Inc increased its stake in shares of Automatic Data Processing by 2.6% in the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider's stock valued at $53,875,000 after acquiring an additional 4,720 shares during the last quarter. Thrivent Financial for Lutherans raised its position in shares of Automatic Data Processing by 18.4% in the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock valued at $40,566,000 after acquiring an additional 21,444 shares during the period. Finally, Hilltop Holdings Inc. bought a new position in Automatic Data Processing during the 3rd quarter worth approximately $5,292,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on ADP. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a report on Thursday, January 29th. Argus decreased their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday. Mizuho cut their price objective on Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Guggenheim initiated coverage on Automatic Data Processing in a research report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective for the company. Finally, Stifel Nicolaus lowered their target price on Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing presently has a consensus rating of "Hold" and an average price target of $253.50.

Automatic Data Processing Stock Down 1.6%

NASDAQ:ADP opened at $207.20 on Thursday. The stock has a 50-day simple moving average of $206.62 and a 200 day simple moving average of $236.95. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The company has a market cap of $82.82 billion, a PE ratio of 19.33 and a beta of 0.83. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its 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. The firm had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, sell-side analysts expect that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 3.3%. Automatic Data Processing's dividend payout ratio is presently 63.43%.

Automatic Data Processing announced that its Board of Directors has initiated a share repurchase program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Christopher D'ambrosio sold 543 shares of the business'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 in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.20% of the stock is currently owned by company insiders.

Automatic Data Processing News Roundup

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP's April National Employment Report showed private-sector employment rose by 109,000 and annual pay was up 4.4% — a core win for ADP's data franchise that supports recurring revenue from clients and analytics services. ADP National Employment Report
• Positive Sentiment: Macro labor data beat expectations — private payrolls increased more than expected — which lifts market tone and supports demand for payroll/HCM services that underpin ADP's business. Private Payrolls Increased More Than Expected
• Neutral Sentiment: ADP priced $1.0B of 5.000% senior notes due 2036 — this raises liquidity and funds corporate uses but increases long-term debt; impact depends on use of proceeds and leverage tolerance. ADP Announces Pricing of its Senior Notes Due 2036
• Neutral Sentiment: Industry coverage pieces highlighted ADP alongside peers — useful for visibility but not an immediate catalyst. Zacks Industry Outlook Highlights
• Negative Sentiment: ADP shares underperformed peers on Wednesday, signaling relative weakness versus competitors which can pressure sentiment and fund flows. Automatic Data Processing Inc. stock underperforms Wednesday
• Negative Sentiment: Argus cut its price target from $300 to $240 (still a buy) — a notable downward revision that can weigh on sentiment and near-term upside expectations. Argus adjusts price target on Automatic Data Processing
• Negative Sentiment: Coverage flagged ADP raising $1B amid a separate report noting "Brightline warns of survival risk" — language like this can stoke headline-driven volatility even if the company frames the financing as routine. ADP raises $1B as Brightline warns of survival risk

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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