Capital Research Global Investors Buys 372,413 Shares of Automatic Data Processing, Inc. $ADP

Capital Research Global Investors grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.6% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 8,393,607 shares of the business services provider’s stock after acquiring an additional 372,413 shares during the period. Capital Research Global Investors’ holdings in Automatic Data Processing were worth $2,159,088,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Northcape Wealth Management LLC grew its position 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 valued at $1,692,000 after acquiring an additional 39 shares during the period. Private Advisory Group LLC grew its position in shares of Automatic Data Processing by 4.8% during the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider’s stock valued at $254,000 after acquiring an additional 40 shares during the period. Laird Norton Wetherby Wealth Management LLC grew its position in shares of Automatic Data Processing by 0.3% during the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 15,179 shares of the business services provider’s stock valued at $4,455,000 after acquiring an additional 41 shares during the period. Rathbones Group PLC grew its position in shares of Automatic Data Processing by 1.1% during the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider’s stock valued at $1,036,000 after acquiring an additional 42 shares during the period. Finally, Zullo Investment Group Inc. grew its position in shares of Automatic Data Processing by 2.3% during the 4th quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider’s stock valued at $485,000 after acquiring an additional 42 shares during the period. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $231.95 on Friday. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $329.93. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The stock has a market capitalization of $92.72 billion, a P/E ratio of 21.64 and a beta of 0.84. The firm’s 50 day moving average is $210.02 and its 200 day moving average is $230.12.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $5.94 billion for the quarter, compared to analysts’ expectations of $5.85 billion. During the same period in the prior year, the company posted $3.06 EPS. The business’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. On average, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 11.07 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. Shareholders of record on Friday, June 12th will be paid a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 2.9%. Automatic Data Processing’s dividend payout ratio is currently 63.43%.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the stock. Stifel Nicolaus reduced their target price on shares of Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday, April 30th. TD Cowen upgraded shares of Automatic Data Processing to a “hold” rating in a research note on Monday, May 18th. UBS Group upped their price target on shares of Automatic Data Processing from $210.00 to $218.00 and gave the company a “neutral” rating in a research note on Thursday, April 30th. Cantor Fitzgerald dropped their price target on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 29th. Finally, Jefferies Financial Group dropped their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $244.29.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president directly 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 document filed with the SEC, which is available through this hyperlink. 0.20% of the stock is 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.