Franklin Resources Inc. Reduces Holdings in Automatic Data Processing, Inc. $ADP

Franklin Resources Inc. trimmed its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 32.0% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 454,307 shares of the business services provider’s stock after selling 213,476 shares during the quarter. Franklin Resources Inc.’s holdings in Automatic Data Processing were worth $116,861,000 as of its most recent filing with the SEC.

Several other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Automatic Data Processing by 0.9% during the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after purchasing an additional 389,451 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Automatic Data Processing by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock valued at $2,977,777,000 after purchasing an additional 136,876 shares during the last quarter. Capital Research Global Investors lifted its stake in shares of Automatic Data Processing by 4.6% in the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock valued at $2,159,088,000 after purchasing an additional 372,413 shares during the last quarter. Wellington Management Group LLP lifted 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 purchasing an additional 2,208,927 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in Automatic Data Processing by 5.7% during the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider’s stock worth $1,419,951,000 after acquiring an additional 261,312 shares in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Down 0.0%

Shares of NASDAQ ADP opened at $231.10 on Thursday. The stock has a market cap of $92.38 billion, a PE ratio of 21.56 and a beta of 0.84. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98. The business has a 50-day moving average price of $211.62 and a 200 day moving average price of $229.57.

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

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given 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 of this dividend is Friday, June 12th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 63.43%.

Analysts Set New Price Targets

ADP has been the topic of several research reports. Citigroup decreased their target price on Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a research note on Thursday, April 30th. Guggenheim initiated coverage on Automatic Data Processing in a report on Thursday, March 19th. They set a “buy” rating and a $270.00 price target on the stock. Morgan Stanley cut their price target on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 28th. Wells Fargo & Company upgraded Automatic Data Processing from an “underweight” rating to an “equal weight” rating and set a $214.00 price target on the stock in a report on Monday, May 18th. Finally, BMO Capital Markets cut their price target on Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating on the stock in a report on Tuesday, April 7th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and an average target price of $244.29.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the 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 completion of the sale, the vice president directly owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. This trade represents a 5.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.20% of the company’s stock.

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.