Lecap Asset Management Ltd. Has $2.01 Million Stake in Automatic Data Processing, Inc. $ADP

Lecap Asset Management Ltd. increased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 66.8% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 7,799 shares of the business services provider’s stock after acquiring an additional 3,124 shares during the period. Automatic Data Processing accounts for about 0.8% of Lecap Asset Management Ltd.’s holdings, making the stock its 18th largest position. Lecap Asset Management Ltd.’s holdings in Automatic Data Processing were worth $2,006,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently added to or reduced their stakes in ADP. Imprint Wealth LLC bought a new stake in Automatic Data Processing during the 3rd quarter valued at approximately $25,000. TruNorth Capital Management LLC bought a new stake in Automatic Data Processing during the 3rd quarter valued at approximately $28,000. Cloud Capital Management LLC bought a new stake in Automatic Data Processing during the 3rd quarter valued at approximately $29,000. Board of the Pension Protection Fund bought a new stake in Automatic Data Processing during the 4th quarter valued at approximately $31,000. Finally, Y.D. More Investments Ltd bought a new stake in Automatic Data Processing during the 3rd quarter valued at approximately $32,000. Institutional investors own 80.03% of the company’s stock.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the company’s stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the sale, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the sale, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,809 shares of company stock worth $410,410 over the last three months. Company insiders own 0.20% of the company’s stock.

Analyst Upgrades and Downgrades

ADP has been the subject of several recent analyst reports. Morgan Stanley decreased their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th. Wells Fargo & Company decreased their target price on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating for the company in a research note on Friday, March 27th. JPMorgan Chase & Co. decreased their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Citigroup decreased their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Finally, UBS Group reduced their price objective on Automatic Data Processing from $220.00 to $210.00 and set a “neutral” rating for the company in a research report on Monday, April 13th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $278.62.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $200.47 on Friday. The firm has a market capitalization of $80.72 billion, a PE ratio of 19.28 and a beta of 0.85. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $329.93. The firm has a 50-day moving average price of $209.17 and a 200 day moving average price of $243.75.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The firm had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter last year, the company earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has authorized a share repurchase plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

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 given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date is Friday, June 12th. Automatic Data Processing’s dividend payout ratio is 65.38%.

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.