World Investment Advisors Purchases 17,434 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• World Investment Advisors increased its stake in Automatic Data Processing by 164% in the fourth quarter, adding 17,434 shares for a total of 28,062 shares valued at about $7.2 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus $3.30 expected 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 declared a quarterly dividend of $1.70 per share, implying a 3.3% annual yield, and authorized a $6 billion share repurchase program covering up to 5.8% of outstanding stock.

World Investment Advisors raised its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 164.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 28,062 shares of the business services provider's stock after buying an additional 17,434 shares during the quarter. World Investment Advisors' holdings in Automatic Data Processing were worth $7,218,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Imprint Wealth LLC bought a new stake in Automatic Data Processing in the third quarter valued at about $25,000. Cloud Capital Management LLC acquired a new position in Automatic Data Processing in the third quarter worth about $29,000. Board of the Pension Protection Fund bought a new position in Automatic Data Processing during the fourth quarter worth about $31,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing during the third quarter valued at approximately $32,000. Finally, High Point Wealth Management LLC acquired a new stake in Automatic Data Processing during the fourth quarter valued at approximately $34,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $208.63 on Thursday. The stock has a market capitalization of $83.40 billion, a price-to-earnings ratio of 19.46 and a beta of 0.83. The firm's 50-day moving average price is $206.50 and its two-hundred day moving average price is $234.47. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. The company had revenue of $5.94 billion during the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. Automatic Data Processing's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts predict that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. Automatic Data Processing's payout ratio is currently 63.43%.

Automatic Data Processing announced that its board has authorized a stock repurchase plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

ADP has been the topic of several analyst reports. Robert W. Baird lowered their price objective on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Guggenheim initiated coverage on Automatic Data Processing in a research report on Thursday, March 19th. They set a "buy" rating and a $270.00 target price for the company. UBS Group boosted 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. Stifel Nicolaus lowered their price target on Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. Finally, Citigroup dropped their price objective 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. One equities research 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.com, Automatic Data Processing has an average rating of "Hold" and a consensus target price of $253.50.

Insider Buying and Selling

In other 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 sale, the vice president owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.20% of the company's stock.

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.

Want to see what other hedge funds are holding ADP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report).

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.