Sei Investments Co. Purchases 114,170 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Sei Investments Co. boosted its stake in Automatic Data Processing by 81.1% in the first quarter, buying an additional 114,170 shares and bringing its total holding to 255,010 shares worth about $51.8 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus the $3.30 consensus and revenue of $5.94 billion versus estimates of $5.85 billion. Revenue rose 7% year over year.
• Wall Street is mixed on the stock: analysts currently have a consensus “Hold” rating with an average price target of $256, while several firms recently cut their targets despite one buy rating being reiterated.

Sei Investments Co. increased its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 81.1% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 255,010 shares of the business services provider's stock after buying an additional 114,170 shares during the quarter. Sei Investments Co. owned 0.06% of Automatic Data Processing worth $51,816,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also added to or reduced their stakes in ADP. Northwestern Mutual Wealth Management Co. increased its position in Automatic Data Processing by 6,493.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after acquiring an additional 3,415,576 shares during the period. Cardano Risk Management B.V. lifted its holdings in shares of Automatic Data Processing by 950.1% during the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock worth $916,557,000 after purchasing an additional 3,223,855 shares during the period. Norges Bank bought a new stake in shares of Automatic Data Processing in the fourth quarter worth $721,738,000. Clearbridge Investments LLC grew its stake in shares of Automatic Data Processing by 133.3% in the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider's stock worth $434,151,000 after purchasing an additional 964,405 shares during the last quarter. Finally, Wellington Management Group LLP increased its holdings in Automatic Data Processing by 8.0% in the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider's stock valued at $1,896,944,000 after purchasing an additional 544,210 shares during the period. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Shares of ADP opened at $250.09 on Friday. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The business's 50 day moving average price is $231.61 and its two-hundred day moving average price is $224.52. The firm has a market cap of $99.97 billion, a PE ratio of 23.33 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share 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 for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter in the prior year, the business earned $3.06 earnings per share. The business's quarterly revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts anticipate that Automatic Data Processing, Inc. will post 11.08 EPS for the current year.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on ADP shares. Citigroup lowered their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Jefferies Financial Group reduced their price target on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Argus decreased their price target on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Guggenheim restated a "buy" rating and set a $270.00 price objective on shares of Automatic Data Processing in a research report on Tuesday, July 21st. Finally, BMO Capital Markets cut their price objective on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and an average target price of $256.00.

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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