Letson Investment Management Inc. Acquires 2,716 Shares of Automatic Data Processing, Inc. $ADP

Letson Investment Management Inc. boosted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 13.4% during the 1st quarter, HoldingsChannel reports. The institutional investor owned 22,911 shares of the business services provider’s stock after acquiring an additional 2,716 shares during the quarter. Automatic Data Processing accounts for approximately 1.8% of Letson Investment Management Inc.’s portfolio, making the stock its 15th largest position. Letson Investment Management Inc.’s holdings in Automatic Data Processing were worth $4,655,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of ADP. Hilltop Holdings Inc. acquired a new position in Automatic Data Processing during the third quarter valued at approximately $5,292,000. Jefferies Financial Group Inc. bought a new stake in Automatic Data Processing in the third quarter valued at approximately $2,794,000. Horizon Investments LLC raised its holdings in Automatic Data Processing by 34.1% in the fourth quarter. Horizon Investments LLC now owns 26,144 shares of the business services provider’s stock worth $6,725,000 after purchasing an additional 6,655 shares during the period. Compass Capital Management Inc. raised its holdings in Automatic Data Processing by 3.0% in the fourth quarter. Compass Capital Management Inc. now owns 203,710 shares of the business services provider’s stock worth $52,400,000 after purchasing an additional 5,899 shares during the period. Finally, Elevation Point Wealth Partners LLC raised its holdings in Automatic Data Processing by 181.5% in the third quarter. Elevation Point Wealth Partners LLC now owns 16,789 shares of the business services provider’s stock worth $4,950,000 after purchasing an additional 10,824 shares during the period. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have recently issued reports on ADP shares. Guggenheim began coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 price target for the company. Robert W. Baird dropped their price objective on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Stifel Nicolaus dropped their price objective on Automatic Data Processing from $270.00 to $240.00 in a research note on Thursday, April 30th. TD Cowen raised Automatic Data Processing to a “hold” rating in a research note on Monday, May 18th. Finally, Citigroup lowered their price target on Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating for the company in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $244.29.

Automatic Data Processing Stock Performance

Shares of ADP opened at $235.73 on Thursday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $315.98. The firm’s 50 day moving average price is $218.34 and its two-hundred day moving average price is $225.87. The firm has a market cap of $94.23 billion, a P/E ratio of 21.99 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data 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 company had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter in the prior year, the firm earned $3.06 earnings per share. The firm’s revenue 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, analysts forecast that Automatic Data Processing, Inc. will post 11.08 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th were issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Friday, June 12th. Automatic Data Processing’s dividend payout ratio is 63.43%.

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.