Retirement Planning Co of New England Inc. Makes New $2.84 Million Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Retirement Planning Co of New England Inc. has acquired 9,282 shares of Automatic Data Processing, Inc. valued at approximately $2.836 million, making it the company's 18th largest holding.
• Heavy institutional interest is evident, with 80.03% of Automatic Data Processing's stock owned by institutional investors and significant increases in stakes from various large investors.
• Automatic Data Processing recently reported $2.26 EPS for the last quarter, exceeding estimates and reflecting a year-over-year revenue growth of 6.3%.

Retirement Planning Co of New England Inc. bought a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 9,282 shares of the business services provider's stock, valued at approximately $2,836,000. Automatic Data Processing comprises approximately 1.0% of Retirement Planning Co of New England Inc.'s holdings, making the stock its 18th biggest holding.

A number of other hedge funds also recently modified their holdings of ADP. Activest Wealth Management lifted its stake in shares of Automatic Data Processing by 2,600.0% during the 1st quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after buying an additional 78 shares during the last quarter. Clarity Asset Management Inc. acquired a new stake in shares of Automatic Data Processing during the 1st quarter worth about $29,000. von Borstel & Associates Inc. acquired a new stake in Automatic Data Processing in the 1st quarter worth about $30,000. Main Street Group LTD raised its stake in Automatic Data Processing by 50.7% in the 4th 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 in the last quarter. Finally, Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing in the 1st quarter worth about $35,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on ADP shares. Mizuho lifted their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. TD Securities lifted their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research note on Wednesday, May 21st. Stifel Nicolaus lifted their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a research report on Thursday, July 10th. Finally, Morgan Stanley boosted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $317.00.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock traded down $0.91 during midday trading on Wednesday, hitting $298.86. 1,447,346 shares of the company traded hands, compared to its average volume of 1,358,456. The stock has a market cap of $121.05 billion, a price-to-earnings ratio of 30.41, a PEG ratio of 2.78 and a beta of 0.82. 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 fifty day moving average price is $304.41 and its 200-day moving average price is $305.42. Automatic Data Processing, Inc. has a 12 month low of $267.79 and a 12 month high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share (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 analyst estimates 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 was up 6.3% on a year-over-year basis. During the same period in the previous year, the firm posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be issued a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. Automatic Data Processing's payout ratio is 61.72%.

Automatic Data Processing Company Profile

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.