Blackrock Reduces $232M in Automatic Data Processing, Inc. ($ADP)
Blackrock cut its ADP position by over 1 million shares, now holding approximately 35.5 million shares.
Key Points
- Blackrock reduced its stake in Automatic Data Processing by 1,043,872 shares, a 2.86% decrease, now holding 35,499,016 shares.
- Shares of ADP on NasdaqGS traded near $224.10 with a market cap of about $90.4 billion and a P/E ratio of 21.1.
- Analysts have mixed views on ADP, with Citigroup maintaining a hold rating and a $230 price target.
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Blackrock has trimmed its holdings in Automatic Data Processing, Inc. (NasdaqGS: ADP), cutting its position by 1,043,872 shares. This reduction represents a 2.86% decrease, leaving Blackrock with 35,499,016 shares valued at roughly $7.96 billion, according to its latest Form 13F filing with the SEC as of the reporting period.
What Changed in Blackrock's Automatic Data Processing Position
Blackrock's recent move saw its stake in ADP decrease from 36,542,888 shares to 35,499,016 shares, a reduction of 1,043,872 shares. This adjustment, reflecting a 2.86% decrease, indicates a strategic trim in its investment, now valued at approximately $7.96 billion.
Other Institutional Activity in Automatic Data Processing
Several other institutional investors have also adjusted their positions in ADP. Vanguard Capital Management LLC significantly increased its holdings by 26,150,698 shares, now owning 26,150,698 shares valued at about $5.31 billion. State Street Corp added 385,962 shares, bringing its total to 19,326,803 shares worth approximately $3.96 billion. Geode Capital Management, LLC also boosted its stake with an addition of 416,634 shares, resulting in a total of 11,993,206 shares valued at $2.44 billion. Meanwhile, Charles Schwab Investment Management Inc made a notable increase of 9,147,649 shares, ending with 11,561,745 shares valued at around $2.35 billion.
Automatic Data Processing, Inc. Stock Down 22.6%
Shares of ADP are currently trading near $224.10 on the NasdaqGS. The company has a market capitalization of approximately $90.4 billion, with a P/E ratio of 21.1 and a forward P/E of 18.6. The stock's beta stands at 0.845, suggesting less volatility compared to the market. Over the past 52 weeks, ADP's stock has ranged from a low of $188.16 to a high of $315.98. The 50-day moving average is $212.50, and the 200-day moving average is $244.64.
$ADP stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
In its most recent earnings report, ADP reported revenue of $21.6 billion, showing a growth rate of 7%. The company's net margin was 20.12%, with a return on equity of 71.21%. Earnings per share stood at $10.72. The next earnings announcement is expected on April 29, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
3 target cuts vs 1 raises.
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EPS & revenue
EPS beat estimates by 1.7%. Revenue beat estimates by 0.5%.
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Profit surprise
EBITDA met by 1 percent. Operating income met by 1 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 target raise, 3 target cuts.
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Earnings quality
Gross margin down 3.4 points. Operating margin up 0.7 points. Positive free cash flow.
Earnings Call Summary
ADP delivered solid first quarter results with 7 percent revenue growth and 7 percent adjusted earnings per share growth. Employer services bookings accelerated, with strong momentum in ADP Lyric HCM and Workforce Now Next-Gen capturing 80 percent of new mid-market sales. Pays per control rounded to zero percent as clients remained cautious about hiring. PEO revenue grew 7 percent, beating expectations, while the company made strategic progress with the Pequity compensation management acquisition and continued expansion of embedded payroll partnerships with Fiserv.
Guidance ADP reaffirmed its full year revenue growth of 5 to 6 percent and adjusted earnings per share growth of 8 to 10 percent. The company expects employer services revenue to grow 5 to 6 percent for the year, with flat pays per control. PEO revenue is expected to grow 5 to 7 percent, with worksite employee growth of 2 to 3 percent. Client funds interest revenue was raised by 10 million dollars to 1.30 to 1.32 billion dollars.
Clearly negative report. The company missed important expectations and likely triggers downward revisions.
Dividend
Automatic Data Processing offers an annual dividend rate of $6.80, with a yield of 3.01%. The company's dividend payout ratio is 60.45%, providing a steady income stream for investors.
Insider Buying and Selling at Automatic Data Processing, Inc.
Recent insider activity at ADP included Executive VP Brian Michaud selling 848 shares on May 8, 2026, at an average price of $212.13 under a pre-planned Rule 10b5-1 program. Additionally, Robert Holmes Swan purchased 3,619 shares on May 7, 2026, at $206.05, also under a pre-planned arrangement. Corporate VP Christopher D'Ambrosio sold shares in several transactions between February and April 2026, with prices ranging from $195.74 to $212.43, all under a Rule 10b5-1 plan.
Analysts Set New Price Targets
Analysts have recently set new price targets for ADP. On May 5, 2026, Argus Research maintained a buy rating with a $240 price target. UBS, TD Cowen, and Citigroup all maintained hold ratings, with price targets of $218, $216, and $230, respectively, on April 30, 2026. The consensus among 15 analysts suggests a hold recommendation, with a mean price target of $246.80.
About Automatic Data Processing
Automatic Data Processing, Inc. (ADP) is a leading provider of cloud-based human capital management solutions, serving clients worldwide. The company operates through two main segments: Employer Services and Professional Employer Organization (PEO). ADP offers a range of services, including payroll, human resources, and compliance solutions, through platforms like RUN Powered by ADP and ADP Workforce Now. Headquartered in Roseland, New Jersey, ADP was founded in 1949 and employs approximately 67,000 people under the leadership of CEO Maria Black.
Bottom Line
Blackrock's recent reduction in its ADP holdings reflects a strategic portfolio adjustment. Investors closely watch such moves as 13F filings provide a backward-looking view of institutional holdings. ADP remains a significant player in the technology sector, attracting interest from both analysts and institutional investors.
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