Wormser Freres Gestion Boosts Stock Position in Automatic Data Processing, Inc. $ADP

Key Points

• Wormser Freres Gestion increased its stake in Automatic Data Processing by 147.1% in the fourth quarter, bringing its holdings to 30,011 shares worth about $7.72 million.
• ADP’s latest quarterly results beat expectations, with EPS of $3.37 on $5.94 billion in revenue, and revenue rose 7.0% year over year.
• The company announced a quarterly dividend of $1.70 per share, equal to $6.80 annually and a 3.1% yield; analysts currently rate the stock Hold on average with a $249 consensus price target.

Wormser Freres Gestion raised its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 147.1% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 30,011 shares of the business services provider's stock after acquiring an additional 17,867 shares during the period. Automatic Data Processing makes up 4.4% of Wormser Freres Gestion's investment portfolio, making the stock its 15th biggest holding. Wormser Freres Gestion's holdings in Automatic Data Processing were worth $7,722,000 as of its most recent filing with the Securities & Exchange Commission.

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

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. UBS Group increased their target price on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Wells Fargo & Company raised Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 target price for the company in a research note on Monday, May 18th. Morgan Stanley cut their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 28th. Mizuho cut their target price on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Finally, Argus cut their target price on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. One investment 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 issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $249.00.

Automatic Data Processing Stock Performance

ADP opened at $221.84 on Friday. The stock has a market cap of $88.68 billion, a P/E ratio of 20.69 and a beta of 0.83. 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 50 day simple moving average is $207.63 and its 200 day simple moving average is $230.93. 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 released 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. The business had revenue of $5.94 billion for the quarter, compared to analysts' expectations 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 revenue was up 7.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities analysts anticipate that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.1%. Automatic Data Processing's dividend payout ratio is currently 63.43%.

Insider Buying and Selling at Automatic Data Processing

In related news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.20% of the stock is currently owned by corporate insiders.

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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