Resona Asset Management Co. Ltd. Sells 5,078 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Resona Asset Management reduced its stake in Automatic Data Processing by 3.6% in the fourth quarter, selling 5,078 shares and leaving it with 135,070 shares valued at about $34.8 million.
• ADP beat earnings expectations in its latest quarter, reporting EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion, while raising FY 2026 guidance to $11.01-$11.11 EPS.
• Analysts remain cautious overall despite a few bullish calls: the stock’s consensus rating is “Hold,” and the average target price stands at $253.50 after several firms cut price targets.

Resona Asset Management Co. Ltd. lowered its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.6% in the 4th quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 135,070 shares of the business services provider's stock after selling 5,078 shares during the period. Resona Asset Management Co. Ltd.'s holdings in Automatic Data Processing were worth $34,815,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the company. Coston McIsaac & Partners raised its position in shares of Automatic Data Processing by 13.2% in the 3rd quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider's stock worth $98,000 after acquiring an additional 39 shares in the last quarter. Northcape Wealth Management LLC raised its position in shares of 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 worth $1,692,000 after acquiring an additional 39 shares in the last quarter. Private Advisory Group LLC raised its position in shares of 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 worth $254,000 after acquiring an additional 40 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC raised its position in shares of 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 worth $4,455,000 after acquiring an additional 41 shares in the last quarter. Finally, Rathbones Group PLC raised its position in shares of 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 worth $1,036,000 after acquiring an additional 42 shares in the last quarter. Institutional investors own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

ADP has been the subject of several research reports. Robert W. Baird decreased their target price on Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Mizuho decreased their target price on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Stifel Nicolaus decreased their target price on Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. Guggenheim assumed coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They set a "buy" rating and a $270.00 target price for the company. Finally, Citigroup lowered their target price on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $253.50.

Automatic Data Processing Price Performance

ADP stock opened at $222.94 on Tuesday. The firm has a 50 day moving average price of $206.29 and a 200-day moving average price of $233.09. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The firm has a market capitalization of $89.12 billion, a price-to-earnings ratio of 20.80 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 earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.85 billion. During the same period last year, the business earned $3.06 earnings per share. 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. Equities research analysts forecast 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. Stockholders of record on Friday, June 12th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is presently 63.43%.

Insider Activity

In related 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 transaction of $113,188.35. Following the completion of the sale, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.20% of the company's stock.

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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