Tandem Investment Advisors Inc. Increases Position in Automatic Data Processing, Inc. $ADP

Key Points

• Tandem Investment Advisors increased its stake in Automatic Data Processing by 6.6% in the fourth quarter, bringing its holdings to 330,041 shares worth about $84.9 million.
• ADP reported better-than-expected quarterly results, with earnings per share of $3.37 versus estimates of $3.30 and revenue of $5.94 billion, up 7% year over year.
• The company also announced a quarterly dividend of $1.70 per share, equal to an annualized yield of about 3.0%, while analysts currently hold a consensus rating of “Hold” with an average price target of $249.

Tandem Investment Advisors Inc. raised its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 6.6% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 330,041 shares of the business services provider's stock after acquiring an additional 20,503 shares during the period. Automatic Data Processing makes up approximately 3.2% of Tandem Investment Advisors Inc.'s investment portfolio, making the stock its 18th largest position. Tandem Investment Advisors Inc. owned about 0.08% of Automatic Data Processing worth $84,896,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Mitchell Capital Management Co. grew its holdings in shares of Automatic Data Processing by 325.0% in the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider's stock valued at $1,996,000 after purchasing an additional 5,200 shares during the period. Atlantic Union Bankshares Corp raised its stake in Automatic Data Processing by 136.0% during the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider's stock worth $14,080,000 after purchasing an additional 27,644 shares during the period. Thrivent Financial for Lutherans boosted its holdings in Automatic Data Processing by 18.4% in the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider's stock valued at $40,566,000 after purchasing an additional 21,444 shares during the last quarter. Hilltop Holdings Inc. acquired a new position in Automatic Data Processing in the 3rd quarter valued at about $5,292,000. Finally, Jefferies Financial Group Inc. purchased a new stake in shares of Automatic Data Processing in the 3rd quarter valued at approximately $2,794,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $225.31 on Tuesday. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $329.93. The business's fifty day simple moving average is $206.78 and its 200-day simple moving average is $231.77. The firm has a market cap of $90.06 billion, a PE ratio of 21.02 and a beta of 0.83. 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 announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 EPS for the quarter, beating the consensus estimate 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 business 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 company's quarterly revenue 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. Equities analysts forecast that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Announces Dividend

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

Insider Buying and Selling

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

Analyst Ratings Changes

ADP has been the topic of several analyst reports. Argus reduced their price target 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. Mizuho cut their target price on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Wells Fargo & Company upgraded 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 report on Monday, May 18th. TD Cowen raised Automatic Data Processing to a "hold" rating in a research note on Monday, May 18th. Finally, UBS Group upped their price target on Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $249.00.

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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