Seilern Investment Management Ltd Decreases Holdings in Automatic Data Processing, Inc. $ADP

Seilern Investment Management Ltd reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 26.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 25,061 shares of the business services provider’s stock after selling 9,079 shares during the period. Automatic Data Processing makes up about 0.5% of Seilern Investment Management Ltd’s investment portfolio, making the stock its 21st biggest holding. Seilern Investment Management Ltd’s holdings in Automatic Data Processing were worth $6,446,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds also recently added to or reduced their stakes in ADP. Laurel Wealth Advisors LLC boosted its position in shares of Automatic Data Processing by 30,110.7% in the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after buying an additional 4,653,304 shares during the period. Norges Bank acquired a new stake in shares of Automatic Data Processing in the second quarter valued at about $696,841,000. Wellington Management Group LLP raised its holdings in shares of Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock valued at $2,004,691,000 after buying an additional 2,208,927 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of Automatic Data Processing by 32.1% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider’s stock valued at $960,831,000 after buying an additional 796,379 shares during the period. Finally, Amundi lifted its position in Automatic Data Processing by 24.9% during the 2nd quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock worth $948,549,000 after acquiring an additional 619,829 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Up 0.5%

Shares of ADP opened at $209.71 on Tuesday. Automatic Data Processing, Inc. has a one year low of $203.26 and a one year high of $329.93. The stock has a 50-day moving average price of $228.22 and a 200 day moving average price of $255.72. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The company has a market capitalization of $84.44 billion, a P/E ratio of 20.16 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the previous year, the business earned $2.35 EPS. Automatic Data Processing’s revenue for the quarter was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is 65.38%.

Automatic Data Processing declared that its board has approved a share buyback program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Guggenheim initiated coverage on Automatic Data Processing in a report on Thursday, March 19th. They issued a “buy” rating and a $270.00 price target for the company. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Wells Fargo & Company decreased their target price on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Citigroup lowered their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Finally, Stifel Nicolaus dropped their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $288.46.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the firm’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. This trade represents a 2.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 4,058 shares of company stock worth $1,000,263 in the last ninety days. 0.20% of the stock is currently owned by corporate insiders.

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.