Swiss Life Asset Management Ltd Raises Stock Position in Automatic Data Processing, Inc. $ADP

Key Points

• Swiss Life Asset Management Ltd increased its ADP stake by 90.4% in the fourth quarter, adding 177,352 shares to bring its total holdings to 373,478 shares worth about $96.1 million.
• Several other institutional investors also boosted positions in ADP, and hedge funds plus other institutions now own 80.03% of the company’s stock.
• ADP reported better-than-expected fiscal Q4 results with EPS of $3.37 and revenue of $5.94 billion, while also maintaining a quarterly dividend of $1.70 and a $6 billion share buyback authorization.

Swiss Life Asset Management Ltd grew its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 90.4% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 373,478 shares of the business services provider's stock after acquiring an additional 177,352 shares during the period. Swiss Life Asset Management Ltd owned about 0.09% of Automatic Data Processing worth $96,070,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in ADP. Vanguard Group Inc. grew its holdings in Automatic Data Processing by 0.9% during the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider's stock valued at $12,235,907,000 after purchasing an additional 389,451 shares in the last quarter. Capital Research Global Investors grew its holdings in Automatic Data Processing by 1.5% during the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider's stock valued at $2,354,220,000 after purchasing an additional 116,074 shares in the last quarter. Wellington Management Group LLP grew its holdings in Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock valued at $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Invesco Ltd. grew its holdings in Automatic Data Processing by 5.7% during the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider's stock valued at $1,419,951,000 after purchasing an additional 261,312 shares in the last quarter. Finally, Ameriprise Financial Inc. grew its holdings in Automatic Data Processing by 3.3% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,323,554 shares of the business services provider's stock valued at $1,264,118,000 after purchasing an additional 136,142 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. BMO Capital Markets lowered their price target on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a report on Tuesday, April 7th. Mizuho lowered their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. TD Cowen raised their price target on shares of Automatic Data Processing from $208.00 to $216.00 and gave the company a "hold" rating in a report on Thursday, April 30th. Cantor Fitzgerald lowered their price target on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Finally, Stifel Nicolaus lowered their price target on shares of Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $253.50.

Insiders Place Their Bets

In related news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.20% of the stock is currently owned by corporate insiders.

Automatic Data Processing Trading Down 0.0%

Automatic Data Processing stock opened at $212.99 on Monday. The firm's 50-day moving average is $206.79 and its 200-day moving average is $236.48. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current 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 company has a market cap of $85.14 billion, a P/E ratio of 19.87 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) 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 the consensus estimate of $5.85 billion. During the same period last year, the firm posted $3.06 EPS. The company'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. On average, equities analysts expect that Automatic Data Processing, Inc. will post 11.06 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing announced that its Board of Directors has authorized a stock buyback plan 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 purchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Automatic Data Processing Company 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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