Value Partners Investments Inc. Makes New Investment in Automatic Data Processing, Inc. $ADP

Key Points

• Value Partners Investments bought a new stake in Automatic Data Processing (ADP) during the first quarter, purchasing 181,280 shares valued at about $36.9 million. The position now represents 2.8% of the firm’s portfolio and its 17th largest holding.
• ADP reported better-than-expected quarterly results, posting EPS of $3.37 versus the $3.30 estimate and revenue of $5.94 billion versus $5.85 billion expected. Revenue rose 7% year over year, and the company reaffirmed FY2026 EPS guidance of $11.01 to $11.11.
• The company also announced a quarterly dividend of $1.70 per share, payable July 1, which annualizes to $6.80 per share for a 3.0% yield. Meanwhile, analysts remain cautious overall, with a consensus rating of Hold and an average price target of $244.29.

Value Partners Investments Inc. purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 181,280 shares of the business services provider's stock, valued at approximately $36,871,000. Automatic Data Processing comprises about 2.8% of Value Partners Investments Inc.'s holdings, making the stock its 17th biggest position.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Northcape Wealth Management LLC raised its stake in shares of Automatic Data Processing by 0.6% during the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock worth $1,692,000 after acquiring an additional 39 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC grew its holdings in Automatic Data Processing by 0.3% in the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider's stock worth $4,455,000 after purchasing an additional 41 shares during the last quarter. Rathbones Group PLC grew its holdings in Automatic Data Processing by 1.1% in the fourth quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock worth $1,036,000 after purchasing an additional 42 shares during the last quarter. Zullo Investment Group Inc. increased its position in shares of Automatic Data Processing by 2.3% during the fourth quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider's stock worth $485,000 after purchasing an additional 42 shares in the last quarter. Finally, Trilogy Capital Inc. increased its position in shares of Automatic Data Processing by 5.3% during the fourth quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider's stock worth $219,000 after purchasing an additional 43 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $223.55 on Friday. The company has a market cap of $89.36 billion, a price-to-earnings ratio of 20.85 and a beta of 0.84. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The stock's fifty day moving average price is $216.71 and its 200 day moving average price is $226.78. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $315.98.

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 for the quarter, beating the consensus estimate of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities research analysts forecast that Automatic Data Processing, Inc. will post 11.08 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 given a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.0%. Automatic Data Processing's dividend payout ratio is currently 63.43%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ADP. Cantor Fitzgerald lowered their price objective on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a research report on Wednesday, April 29th. 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 report on Tuesday, April 28th. Citigroup decreased their price target on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Stifel Nicolaus lowered their price target on Automatic Data Processing from $270.00 to $240.00 in a report on Thursday, April 30th. Finally, Guggenheim assumed coverage on Automatic Data Processing in a research note on Thursday, March 19th. They set a "buy" rating and a $270.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $244.29.

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.

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