SEB Asset Management AB Takes Position in Automatic Data Processing, Inc. $ADP

Key Points

• SEB Asset Management AB opened a new position in Automatic Data Processing, buying 122,148 shares valued at about $24.8 million in the first quarter.
• ADP reported better-than-expected quarterly results, posting EPS of $3.37 versus the $3.30 estimate and revenue of $5.94 billion, up 7% year over year.
• Despite the earnings beat, Wall Street remains cautious: the stock has a consensus "Hold" rating and an average price target of $248.64.

SEB Asset Management AB purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 122,148 shares of the business services provider's stock, valued at approximately $24,818,000.

A number of other large investors have also modified their holdings of ADP. Brighton Jones LLC boosted its stake in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after purchasing an additional 4,808 shares during the period. Bison Wealth LLC increased its stake in shares of Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after purchasing an additional 681 shares during the period. Schnieders Capital Management LLC. raised its holdings in shares of Automatic Data Processing by 21.8% during the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock valued at $388,000 after buying an additional 225 shares during the last quarter. Osterweis Capital Management Inc. bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $108,000. Finally, Diversify Advisory Services LLC raised its holdings in shares of Automatic Data Processing by 17.5% during the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after buying an additional 815 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Down 0.0%

ADP stock opened at $255.26 on Monday. The firm's 50-day moving average is $228.00 and its two-hundred day moving average is $224.61. The company has a market capitalization of $102.04 billion, a price-to-earnings ratio of 23.81 and a beta of 0.83. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $315.98. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data 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. The business had revenue of $5.94 billion during the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. During the same period last year, the firm posted $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. On average, analysts forecast that Automatic Data Processing, Inc. will post 11.08 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on ADP. Cantor Fitzgerald decreased their price objective on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Mizuho cut their target price on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Stifel Nicolaus boosted their price target on Automatic Data Processing from $240.00 to $260.00 and gave the stock a "hold" rating in a research report on Wednesday, July 8th. UBS Group boosted their price target on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research report on Thursday, April 30th. Finally, Citigroup decreased their price target on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $248.64.

Automatic Data Processing 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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