Tandem Investment Advisors Inc. Grows Stock Position in Automatic Data Processing, Inc. $ADP

Tandem Investment Advisors Inc. lifted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 6.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 330,041 shares of the business services provider’s stock after purchasing an additional 20,503 shares during the period. Automatic Data Processing comprises about 3.2% of Tandem Investment Advisors Inc.’s holdings, making the stock its 18th largest holding. Tandem Investment Advisors Inc.’s holdings in Automatic Data Processing were worth $84,896,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently bought and sold shares of ADP. Vanguard Group Inc. boosted its stake in shares of Automatic Data Processing by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock valued at $12,235,907,000 after buying an additional 389,451 shares during the period. Capital Research Global Investors boosted its stake in shares of Automatic Data Processing by 1.5% in the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock valued at $2,354,220,000 after buying an additional 116,074 shares during the period. Wellington Management Group LLP boosted its stake in shares of Automatic Data Processing by 47.8% in 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. Invesco Ltd. boosted its stake in shares of Automatic Data Processing by 5.7% in the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider’s stock valued at $1,419,951,000 after buying an additional 261,312 shares during the period. Finally, Ameriprise Financial Inc. boosted its stake in shares of Automatic Data Processing by 3.3% in the 3rd quarter. Ameriprise Financial Inc. now owns 4,323,554 shares of the business services provider’s stock valued at $1,264,118,000 after buying an additional 136,142 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $225.31 on Tuesday. The firm has a market capitalization of $90.06 billion, a P/E ratio of 21.02 and a beta of 0.83. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $329.93. 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’s 50 day moving average is $206.78 and its two-hundred day moving average is $231.77.

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

Automatic Data Processing Dividend Announcement

The business also recently declared 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. This represents a $6.80 annualized dividend and a yield of 3.0%. The ex-dividend date is Friday, June 12th. Automatic Data Processing’s dividend payout ratio is currently 63.43%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on ADP shares. Jefferies Financial Group decreased their price objective on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. BMO Capital Markets decreased their price objective on Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating for the company in a research note on Tuesday, April 7th. Argus decreased their price objective on 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. Guggenheim started coverage on Automatic Data Processing in a research note on Thursday, March 19th. They issued a “buy” rating and a $270.00 price objective for the company. Finally, Wells Fargo & Company upgraded Automatic Data Processing from an “underweight” rating to an “equal weight” rating and set a $214.00 price objective for the company in a research note on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $249.00.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the transaction, the vice president owned 8,912 shares of the company’s stock, valued at $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.20% of the stock is 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.