Federated Hermes Inc. Buys 2,416 Shares of Automatic Data Processing, Inc. $ADP

Federated Hermes Inc. raised its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.5% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 71,909 shares of the business services provider’s stock after buying 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 reporting period.

A number of other hedge funds have also recently modified their holdings of ADP. Jacobsen Capital Management raised its stake in Automatic Data Processing by 3.8% in the second quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock worth $280,000 after buying an additional 33 shares in the last quarter. Signature Wealth Management Group raised its position in shares of Automatic Data Processing by 2.3% in the 2nd quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock worth $447,000 after acquiring an additional 33 shares in the last quarter. Bangor Savings Bank raised its position in shares of Automatic Data Processing by 0.7% in the 2nd quarter. Bangor Savings Bank now owns 4,907 shares of the business services provider’s stock worth $1,513,000 after acquiring an additional 34 shares in the last quarter. Ameritas Advisory Services LLC lifted its stake in shares of Automatic Data Processing by 2.1% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider’s stock valued at $502,000 after purchasing an additional 34 shares during the period. Finally, PGIM Custom Harvest LLC boosted its position in shares of Automatic Data Processing by 4.9% during the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock valued at $223,000 after purchasing an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on ADP. Dbs Bank upgraded Automatic Data Processing to a “hold” rating in a report on Thursday, August 21st. JPMorgan Chase & Co. decreased their price target on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday. Citigroup assumed coverage on shares of Automatic Data Processing in a report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective on the stock. Finally, Wells Fargo & Company lowered their target price on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Two investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $312.67.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $258.23 on Wednesday. The company has a 50-day moving average price of $267.59 and a 200-day moving average price of $291.82. Automatic Data Processing, Inc. has a 52 week low of $247.18 and a 52 week high of $329.93. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $104.44 billion, a P/E ratio of 25.49 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (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 company had revenue of $5.18 billion for the quarter, compared to the consensus estimate of $5.14 billion. During the same quarter last year, the firm posted $2.33 earnings per share. The firm’s revenue was up 7.1% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

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

Automatic Data Processing Profile

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.