Swedbank AB Acquires 2,086 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Swedbank AB increased its holdings in Automatic Data Processing, Inc. by 0.9%, acquiring an additional 2,086 shares for a total of approximately $72.88 million at the end of the first quarter.
• Automatic Data Processing's quarterly earnings topped expectations with $2.26 EPS, surpassing the consensus estimate of $2.23, while revenue reached $5.13 billion, exceeding forecasts.
• The company announced a quarterly dividend of $1.54, which will be paid on October 1, indicating a 2.1% yield and a payout ratio of 61.72%.

Swedbank AB boosted its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 0.9% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 238,543 shares of the business services provider's stock after acquiring an additional 2,086 shares during the quarter. Swedbank AB owned approximately 0.06% of Automatic Data Processing worth $72,882,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in Automatic Data Processing by 0.5% during the 1st quarter. Vanguard Group Inc. now owns 40,949,884 shares of the business services provider's stock valued at $12,511,418,000 after purchasing an additional 218,614 shares during the period. Ameriprise Financial Inc. lifted its position in Automatic Data Processing by 15.7% during the 1st quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after purchasing an additional 601,400 shares during the period. Invesco Ltd. lifted its position in Automatic Data Processing by 3.7% during the 1st quarter. Invesco Ltd. now owns 4,031,713 shares of the business services provider's stock valued at $1,231,809,000 after purchasing an additional 145,161 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Automatic Data Processing by 2.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,848,307 shares of the business services provider's stock valued at $1,175,773,000 after purchasing an additional 77,296 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Automatic Data Processing by 16.4% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,771,011 shares of the business services provider's stock valued at $1,103,888,000 after purchasing an additional 532,485 shares during the period. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Trading Up 0.8%

Shares of NASDAQ:ADP traded up $2.33 during mid-day trading on Thursday, reaching $291.08. The stock had a trading volume of 710,632 shares, compared to its average volume of 1,717,361. The firm has a market cap of $117.90 billion, a PE ratio of 29.21, a price-to-earnings-growth ratio of 2.64 and a beta of 0.82. The firm has a 50 day simple moving average of $301.89 and a two-hundred day simple moving average of $304.19. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing, Inc. has a twelve month low of $272.18 and a twelve 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 for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The business had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. Automatic Data Processing's revenue for the quarter was up 6.3% on a year-over-year basis. During the same period last year, the company posted $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Dbs Bank upgraded shares of Automatic Data Processing to a "hold" rating in a research report on Thursday, August 21st. UBS Group cut their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a research report on Thursday, July 10th. TD Securities increased their price target on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Two research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $314.73.

Insider Activity

In other Automatic Data Processing news, VP Michael A. Bonarti sold 8,728 shares of the firm's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the sale, the vice president directly owned 80,531 shares in the company, valued at approximately $24,032,866.33. This trade represents a 9.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP David Foskett sold 1,373 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $407,190.61. Following the sale, the vice president owned 11,781 shares in the company, valued at $3,493,891.17. This trade represents a 10.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 52,516 shares of company stock worth $15,632,410. Corporate insiders own 0.21% of the company's stock.

About Automatic Data Processing

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.