Trexquant Investment LP Takes Position in Automatic Data Processing, Inc. $ADP

Key Points

• Trexquant Investment LP made a significant investment of $13.55 million in Automatic Data Processing, purchasing 44,362 shares during the first quarter.
• Multiple institutional investors, including Vanguard Group and Goldman Sachs, have also adjusted their stakes in Automatic Data Processing, reflecting strong interest with over 80% of the stock owned by institutional investors.
• Automatic Data Processing reported a quarterly EPS of $2.26, exceeding estimates, along with a quarterly revenue of $5.13 billion, indicating a 6.3% increase year-over-year.

Trexquant Investment LP bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 44,362 shares of the business services provider's stock, valued at approximately $13,554,000.

Several other hedge funds have also made changes to their positions in ADP. GAMMA Investing LLC increased its holdings in Automatic Data Processing by 34,655.1% in the 1st quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock valued at $886,345,000 after purchasing an additional 2,892,660 shares during the last quarter. Nuveen LLC purchased a new position in shares of Automatic Data Processing during the first quarter worth $661,771,000. Mackenzie Financial Corp boosted its position in shares of Automatic Data Processing by 128.1% during the first quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock worth $484,480,000 after buying an additional 890,440 shares during the period. Ameriprise Financial Inc. grew its stake in shares of Automatic Data Processing by 15.7% in the first quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider's stock valued at $1,348,805,000 after buying an additional 601,400 shares in the last quarter. Finally, SG Americas Securities LLC raised its holdings in shares of Automatic Data Processing by 811.7% in the 1st quarter. SG Americas Securities LLC now owns 637,601 shares of the business services provider's stock valued at $194,806,000 after buying an additional 567,664 shares during the period. Hedge funds and other institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on ADP shares. Dbs Bank upgraded Automatic Data Processing to a "hold" rating in a report on Thursday, August 21st. Morgan Stanley increased their price target on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. Mizuho raised their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a research note on Friday, June 13th. TD Securities lifted their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a report on Wednesday, May 21st. Finally, UBS Group reduced their target price on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a report on Friday, June 13th. Two analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average price target of $317.00.

Automatic Data Processing Stock Down 0.6%

Automatic Data Processing stock traded down $1.73 during midday trading on Wednesday, reaching $298.05. The company's stock had a trading volume of 683,950 shares, compared to its average volume of 1,715,418. The company has a market cap of $120.72 billion, a P/E ratio of 29.89, a P/E/G ratio of 2.78 and a beta of 0.82. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. The business has a 50-day simple moving average of $304.41 and a 200-day simple moving average of $305.42. Automatic Data Processing, Inc. has a fifty-two week low of $267.79 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The firm had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the previous year, the business earned $2.09 earnings per share. The firm's revenue was up 6.3% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed 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. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 annualized dividend and a dividend yield of 2.1%. Automatic Data Processing's dividend payout ratio (DPR) is presently 61.72%.

Automatic Data Processing Profile

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.