Letson Investment Management Inc. Has $4.66 Million Stake in Automatic Data Processing, Inc. $ADP

Letson Investment Management Inc. raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 13.4% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 22,911 shares of the business services provider’s stock after acquiring an additional 2,716 shares during the period. Automatic Data Processing comprises about 1.8% of Letson Investment Management Inc.’s investment portfolio, making the stock its 15th largest position. Letson Investment Management Inc.’s holdings in Automatic Data Processing were worth $4,655,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently bought and sold shares of ADP. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing in the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth about $26,000. Bard Associates Inc. acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth about $28,000. Board of the Pension Protection Fund bought a new position in Automatic Data Processing during the 4th quarter valued at about $31,000. Finally, Prosperity Bancshares Inc bought a new position in Automatic Data Processing during the 4th quarter valued at about $33,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Morgan Stanley reduced their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Tuesday, April 28th. Robert W. Baird dropped their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Wells Fargo & Company upgraded shares of Automatic Data Processing from an “underweight” rating to an “equal weight” rating and set a $214.00 target price for the company in a research note on Monday, May 18th. TD Cowen raised Automatic Data Processing to a “hold” rating in a report on Monday, May 18th. Finally, Argus decreased their price target on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $244.29.

Automatic Data Processing Stock Up 5.3%

NASDAQ:ADP opened at $235.73 on Thursday. The company has a market cap of $94.23 billion, a price-to-earnings ratio of 21.99 and a beta of 0.83. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The stock’s fifty day moving average price is $218.34 and its two-hundred day moving average price is $225.87. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $315.98.

Automatic Data Processing (NASDAQ:ADP) last released its 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 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 for the quarter was up 7.0% on a year-over-year basis. During the same period last year, the firm earned $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 11.08 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Friday, June 12th were given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Friday, June 12th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 63.43%.

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.