Xponance LLC Grows Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Xponance LLC boosted its stake in Automatic Data Processing by 8.4% in the fourth quarter, ending with 110,246 shares valued at about $28.4 million. Several other institutional investors also increased or initiated positions, and hedge funds and institutions now own 80.03% of ADP.
• ADP reported strong quarterly results, posting EPS of $3.37 versus estimates of $3.30 and revenue of $5.94 billion, both topping expectations. Revenue rose 7% year over year, and the company reaffirmed FY2026 EPS guidance of 11.01 to 11.11.
• The company announced a quarterly dividend of $1.70 per share, payable July 1, implying an annualized yield of 3.0%. Meanwhile, analysts remain cautious overall, with an average rating of Hold and a consensus target price of $244.29.

Xponance LLC grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 8.4% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 110,246 shares of the business services provider's stock after purchasing an additional 8,583 shares during the period. Xponance LLC's holdings in Automatic Data Processing were worth $28,359,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. UniSuper Management Pty Ltd raised its holdings in Automatic Data Processing by 0.6% in the 4th quarter. UniSuper Management Pty Ltd now owns 88,064 shares of the business services provider's stock worth $22,653,000 after acquiring an additional 521 shares during the last quarter. IFM Investors Pty Ltd raised its holdings in Automatic Data Processing by 1.6% in the 4th quarter. IFM Investors Pty Ltd now owns 77,778 shares of the business services provider's stock worth $20,007,000 after acquiring an additional 1,214 shares during the last quarter. TCTC Holdings LLC raised its holdings in Automatic Data Processing by 4.9% in the 4th quarter. TCTC Holdings LLC now owns 35,306 shares of the business services provider's stock worth $9,082,000 after acquiring an additional 1,660 shares during the last quarter. SmartHarvest Portfolios LLC purchased a new position in Automatic Data Processing in the 4th quarter worth approximately $385,000. Finally, RAM Investment Partners LLC purchased a new position in Automatic Data Processing in the 4th quarter worth approximately $151,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president 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 sale was disclosed in a legal filing with the SEC, which is available at this link. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Trading Down 2.3%

Shares of ADP stock opened at $225.77 on Friday. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $315.98. The firm has a fifty day moving average price of $212.08 and a 200-day moving average price of $229.38. 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 company has a market cap of $90.25 billion, a price-to-earnings ratio of 21.06 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data 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. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter in the previous year, the firm posted $3.06 EPS. The company's revenue for the quarter was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. As a group, equities analysts predict that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. Automatic Data Processing's payout ratio is presently 63.43%.

Analyst Ratings Changes

A number of brokerages recently weighed in on ADP. Citigroup decreased their price objective on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a report on Thursday, April 30th. Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 28th. TD Cowen raised shares of Automatic Data Processing to a "hold" rating in a research report on Monday, May 18th. BMO Capital Markets cut their target price on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research report on Tuesday, April 7th. Finally, Argus cut their target price on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $244.29.

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.

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