Rakuten Investment Management Inc. Increases Holdings in Automatic Data Processing, Inc. $ADP

Rakuten Investment Management Inc. grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 297.5% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 75,063 shares of the business services provider’s stock after purchasing an additional 56,179 shares during the quarter. Rakuten Investment Management Inc.’s holdings in Automatic Data Processing were worth $19,487,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. increased its position in Automatic Data Processing by 6,493.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after buying an additional 3,415,576 shares during the last quarter. Cardano Risk Management B.V. lifted its holdings in Automatic Data Processing by 950.1% during the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock valued at $916,557,000 after purchasing an additional 3,223,855 shares during the last quarter. Norges Bank purchased a new position in shares of Automatic Data Processing in the fourth quarter worth about $721,738,000. Wellington Management Group LLP increased its stake in shares of Automatic Data Processing by 47.8% in the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Finally, Clearbridge Investments LLC increased its stake in shares of Automatic Data Processing by 133.3% in the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock worth $434,151,000 after purchasing an additional 964,405 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 1.3%

ADP stock opened at $223.22 on Tuesday. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The firm has a market capitalization of $89.23 billion, a PE ratio of 20.82 and a beta of 0.84. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $315.98. The stock has a 50-day simple moving average of $212.96 and a two-hundred day simple moving average of $228.98.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating analysts’ consensus estimates of $3.30 by $0.07. The business had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The company’s quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts predict that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. TD Cowen upgraded shares of Automatic Data Processing to a “hold” rating in a research note on Monday, May 18th. Citigroup reduced their target price on shares of Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating for the company in a research note on Thursday, April 30th. Argus reduced 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 note on Tuesday, May 5th. Mizuho reduced their target price on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Finally, UBS Group lifted their target price on shares of Automatic Data Processing from $210.00 to $218.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. One equities research 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 assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $244.29.

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.