Federated Hermes Inc. Grows Holdings in Automatic Data Processing, Inc. $ADP

Federated Hermes Inc. boosted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.5% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 71,909 shares of the business services provider’s stock after acquiring an additional 2,416 shares during the period. Federated Hermes Inc.’s holdings in Automatic Data Processing were worth $22,177,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the company. Advisory Alpha LLC increased its stake in Automatic Data Processing by 130.2% in the 1st quarter. Advisory Alpha LLC now owns 4,416 shares of the business services provider’s stock worth $1,349,000 after buying an additional 2,498 shares during the period. Meiji Yasuda Life Insurance Co boosted its position in Automatic Data Processing by 4.4% in the 1st quarter. Meiji Yasuda Life Insurance Co now owns 32,478 shares of the business services provider’s stock valued at $9,923,000 after buying an additional 1,375 shares during the period. MGO One Seven LLC grew its stake in Automatic Data Processing by 18.3% in the 2nd quarter. MGO One Seven LLC now owns 13,578 shares of the business services provider’s stock worth $4,187,000 after acquiring an additional 2,105 shares in the last quarter. Morningstar Investment Management LLC purchased a new position in shares of Automatic Data Processing during the second quarter worth approximately $1,795,000. Finally, Zurich Insurance Group Ltd FI bought a new stake in shares of Automatic Data Processing during the first quarter valued at approximately $39,906,000. 80.03% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages recently issued reports on ADP. Dbs Bank raised Automatic Data Processing to a “hold” rating in a research note on Thursday, August 21st. JPMorgan Chase & Co. lowered their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Wells Fargo & Company dropped their price target on 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. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday. Finally, UBS Group dropped their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a report on Wednesday, September 17th. Two investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and a consensus target price of $312.67.

Automatic Data Processing Price Performance

Shares of ADP stock opened at $258.23 on Wednesday. The stock’s 50-day moving average is $267.59 and its 200 day moving average is $291.82. Automatic Data Processing, Inc. has a 1-year low of $247.18 and a 1-year high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market cap of $104.44 billion, a P/E ratio of 25.49 and a beta of 0.86.

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

Automatic Data Processing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 1st. Shareholders of record on Friday, December 12th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 2.6%. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.54. The ex-dividend date is Friday, December 12th. Automatic Data Processing’s payout ratio is 60.81%.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.