CX Institutional Acquires 17,205 Shares of Automatic Data Processing, Inc. $ADP

CX Institutional lifted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 63.9% during the third quarter, Holdings Channel reports. The institutional investor owned 44,137 shares of the business services provider’s stock after acquiring an additional 17,205 shares during the quarter. CX Institutional’s holdings in Automatic Data Processing were worth $12,954,000 as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of ADP. Harbor Asset Planning Inc. bought a new position in shares of Automatic Data Processing during the second quarter valued at approximately $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing in the 2nd quarter worth approximately $26,000. Howard Hughes Medical Institute bought a new position in Automatic Data Processing during the 2nd quarter valued at approximately $27,000. Solstein Capital LLC purchased a new position in Automatic Data Processing during the second quarter valued at $28,000. Finally, Westside Investment Management Inc. boosted its holdings in Automatic Data Processing by 80.0% in the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after acquiring an additional 40 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

ADP opened at $261.12 on Wednesday. The company’s 50-day simple moving average is $257.40 and its two-hundred day simple moving average is $283.71. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $105.61 billion, a P/E ratio of 25.78 and a beta of 0.86. Automatic Data Processing, Inc. has a 52-week low of $247.18 and a 52-week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, beating the consensus estimate of $2.44 by $0.05. The firm had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The firm’s quarterly revenue was up 7.1% on a year-over-year basis. During the same period in the previous year, the company earned $2.33 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 1st. Stockholders of record on Friday, December 12th were issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, December 12th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s payout ratio is currently 67.13%.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Citigroup assumed coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective for the company. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Finally, JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Two research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Automatic Data Processing has an average rating of “Hold” and a consensus price target of $306.42.

About Automatic Data Processing

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.