Prospera Financial Services Inc Lowers Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Prospera Financial Services cut its stake in Automatic Data Processing by 22.8% in the fourth quarter, selling 6,468 shares and leaving it with 21,886 shares valued at about $5.63 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 issued FY 2026 guidance of $11.01 to $11.11 in EPS.
• The company declared a quarterly dividend of $1.70 per share, implying a 3.0% yield. Meanwhile, analysts mostly rate the stock a Hold, with a consensus price target of $249.

Prospera Financial Services Inc reduced its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 22.8% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 21,886 shares of the business services provider's stock after selling 6,468 shares during the quarter. Prospera Financial Services Inc's holdings in Automatic Data Processing were worth $5,634,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the company. Imprint Wealth LLC purchased a new position in Automatic Data Processing in the 3rd quarter valued at about $25,000. Cloud Capital Management LLC purchased a new position in Automatic Data Processing in the 3rd quarter valued at about $29,000. Board of the Pension Protection Fund purchased a new position in Automatic Data Processing in the 4th quarter valued at about $31,000. Y.D. More Investments Ltd purchased a new position in Automatic Data Processing in the 3rd quarter valued at about $32,000. Finally, High Point Wealth Management LLC purchased a new position in Automatic Data Processing in the 4th quarter valued at about $34,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

ADP opened at $225.31 on Monday. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The company's 50 day simple moving average is $206.43 and its two-hundred day simple moving average is $232.01. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93. The firm has a market capitalization of $90.06 billion, a price-to-earnings ratio of 21.02 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results 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. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The business had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period last year, the company posted $3.06 EPS. The business's revenue was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Analysts expect that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is 63.43%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.20% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of brokerages recently weighed in on ADP. Mizuho decreased their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Jefferies Financial Group decreased their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Argus decreased their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Wells Fargo & Company raised shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price target on the stock in a research note on Monday, May 18th. Finally, Stifel Nicolaus decreased their price target on shares of 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 issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $249.00.

About Automatic Data Processing

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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