Quarry LP Acquires New Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Quarry LP has acquired a stake in Automatic Data Processing, purchasing 1,922 shares valued at approximately $587,000.
• Other institutional investors have significantly increased their holdings in ADP, with GAMMA Investing LLC's stake rising by 34,655.1% during the first quarter.
• Automatic Data Processing's recent quarterly earnings surpassed estimates, reporting $2.26 EPS against an expected $2.23, and also increasing revenue by 6.3% year-over-year.

Quarry LP bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 1,922 shares of the business services provider's stock, valued at approximately $587,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Activest Wealth Management boosted its holdings in shares of Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after purchasing an additional 78 shares during the period. Clarity Asset Management Inc. acquired a new stake in shares of Automatic Data Processing during the first quarter worth approximately $29,000. von Borstel & Associates Inc. acquired a new stake in shares of Automatic Data Processing during the first quarter worth approximately $30,000. Main Street Group LTD boosted its holdings in shares of Automatic Data Processing by 50.7% during the fourth quarter. Main Street Group LTD now owns 113 shares of the business services provider's stock worth $33,000 after purchasing an additional 38 shares during the period. Finally, Y.D. More Investments Ltd bought a new position in Automatic Data Processing during the first quarter valued at approximately $35,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP traded up $2.34 on Thursday, hitting $301.20. The stock had a trading volume of 700,952 shares, compared to its average volume of 1,713,670. Automatic Data Processing, Inc. has a twelve month low of $267.79 and a twelve month high of $329.93. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. The firm's 50 day moving average price is $304.42 and its 200-day moving average price is $305.38. The company has a market capitalization of $122.00 billion, a price-to-earnings ratio of 30.18, a price-to-earnings-growth ratio of 2.78 and a beta of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results 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. The company had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, equities research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. Stifel Nicolaus raised their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. TD Securities raised their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. UBS Group dropped their price target on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research report on Friday, June 13th. Finally, Royal Bank Of Canada reissued a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Two research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and a consensus price target of $317.00.

About Automatic Data Processing

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.