Securian Asset Management Inc. Sells 8,563 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Securian Asset Management cut its stake in Automatic Data Processing by 43.8% in the fourth quarter, selling 8,563 shares and leaving it with 10,998 shares valued at about $2.83 million.
• ADP posted strong quarterly results, reporting earnings of $3.37 per share and revenue of $5.94 billion, both ahead of analyst estimates, while revenue rose 7% year over year.
• The company also announced a $6 billion share buyback and a quarterly dividend of $1.70 per share, equal to a 3.2% annualized yield.

Securian Asset Management Inc. lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 43.8% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 10,998 shares of the business services provider's stock after selling 8,563 shares during the period. Securian Asset Management Inc.'s holdings in Automatic Data Processing were worth $2,829,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. CGC Financial Services LLC raised its position in shares of Automatic Data Processing by 13.7% during the 3rd quarter. CGC Financial Services LLC now owns 323 shares of the business services provider's stock valued at $95,000 after buying an additional 39 shares in the last quarter. Coston McIsaac & Partners raised its position in shares of Automatic Data Processing by 13.2% during the 3rd quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider's stock valued at $98,000 after buying an additional 39 shares in the last quarter. Northcape Wealth Management LLC raised its position in shares of Automatic Data Processing by 0.6% during the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock valued at $1,692,000 after buying an additional 39 shares in the last quarter. Private Advisory Group LLC raised its position in shares of Automatic Data Processing by 4.8% during the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider's stock valued at $254,000 after buying an additional 40 shares in the last quarter. Finally, Laird Norton Wetherby Wealth Management LLC raised its position in shares of Automatic Data Processing by 0.3% during the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider's stock valued at $4,455,000 after buying an additional 41 shares in the last quarter. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Automatic Data Processing stock opened at $212.99 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. 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 $85.14 billion, a P/E ratio of 19.87 and a beta of 0.83. The company's 50-day moving average is $206.79 and its 200 day moving average is $236.48.

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 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 company had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period in the prior year, the company posted $3.06 EPS. The firm's revenue for the quarter 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. Research analysts forecast that Automatic Data Processing, Inc. will post 11.06 EPS for the current year.

Automatic Data Processing declared that its board has initiated a stock buyback program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing's dividend payout ratio (DPR) is 63.43%.

Insider Activity at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president owned 8,912 shares in the company, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.20% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ADP shares. Stifel Nicolaus decreased their target price on shares of Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. Argus decreased their target price on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. Citigroup decreased their target price on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research report on Thursday, April 30th. Mizuho decreased their target price on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Finally, Guggenheim assumed coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They set a "buy" rating and a $270.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Automatic Data Processing currently has an average rating of "Hold" and an average price target of $253.50.

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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