Swiss National Bank Trims Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Swiss National Bank reduced its ADP stake by 5.1% in the fourth quarter, selling 60,120 shares and leaving it with about 1.11 million shares valued at roughly $285.5 million.
• ADP beat earnings and revenue expectations in its latest quarterly report, posting EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion versus $5.85 billion expected, with revenue up 7% year over year.
• Analysts remain cautious on the stock: the consensus rating is “Hold,” and the average target price is $244.29, even as the company announced a quarterly dividend of $1.70 per share.

Swiss National Bank lowered its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 5.1% during the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 1,110,080 shares of the business services provider's stock after selling 60,120 shares during the quarter. Swiss National Bank owned approximately 0.28% of Automatic Data Processing worth $285,546,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Imprint Wealth LLC purchased a new stake in Automatic Data Processing in the 3rd quarter valued at approximately $25,000. Board of the Pension Protection Fund purchased a new stake in Automatic Data Processing in the 4th quarter valued at approximately $31,000. Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the 3rd quarter valued at approximately $32,000. High Point Wealth Management LLC purchased a new stake in Automatic Data Processing in the 4th quarter valued at approximately $34,000. Finally, AlphaQuest LLC purchased a new stake in Automatic Data Processing in the 3rd quarter valued at approximately $38,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

ADP has been the topic of a number of recent research reports. Stifel Nicolaus reduced their target price on Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. Morgan Stanley reduced their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 28th. Wells Fargo & Company raised Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 target price on the stock in a research note on Monday, May 18th. Citigroup reduced their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Finally, Mizuho reduced their price target on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $244.29.

Automatic Data Processing Trading Down 2.3%

Shares of Automatic Data Processing stock opened at $225.77 on Friday. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $315.98. The firm has a market cap of $90.25 billion, a PE ratio of 21.06 and a beta of 0.84. The business's fifty day moving average is $212.08 and its two-hundred day moving average is $229.38. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results 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 return on equity of 68.82% and a net margin of 20.12%.The company 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 company posted $3.06 EPS. The business's revenue for the quarter 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. Analysts anticipate that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio is currently 63.43%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the 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 of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. 0.20% of the stock is currently owned by corporate insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.