Great Lakes Advisors LLC Sells 4,889 Shares of Automatic Data Processing, Inc. $ADP

Great Lakes Advisors LLC lessened its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 14.6% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 28,488 shares of the business services provider’s stock after selling 4,889 shares during the period. Great Lakes Advisors LLC’s holdings in Automatic Data Processing were worth $8,361,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in ADP. Laurel Wealth Advisors LLC grew its holdings in shares of Automatic Data Processing by 30,110.7% in the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after acquiring an additional 4,653,304 shares during the period. Norges Bank purchased a new position in Automatic Data Processing in the second quarter worth about $696,841,000. Amundi grew its stake in shares of Automatic Data Processing by 24.9% during the 2nd quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock valued at $948,549,000 after purchasing an additional 619,829 shares during the period. JPMorgan Chase & Co. grew its stake in shares of Automatic Data Processing by 26.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock valued at $867,445,000 after purchasing an additional 591,800 shares during the period. Finally, Invesco Ltd. lifted its stake in shares of Automatic Data Processing by 13.5% in the 2nd quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock worth $1,411,449,000 after purchasing an additional 544,968 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, VP David Kwon sold 900 shares of the business’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the transaction, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. The trade was a 6.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the transaction, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 2,249 shares of company stock worth $589,852. 0.20% of the stock is owned by insiders.

Automatic Data Processing Stock Down 1.9%

ADP opened at $245.97 on Friday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.03. Automatic Data Processing, Inc. has a fifty-two week low of $244.44 and a fifty-two week high of $329.93. The firm’s fifty day moving average is $258.49 and its 200 day moving average is $278.33. The stock has a market cap of $99.48 billion, a price-to-earnings ratio of 23.65 and a beta of 0.86.

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

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 67.13%.

Automatic Data Processing declared that its Board of Directors has authorized a share buyback plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Automatic Data Processing News Roundup

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue ~$5.36B, with revenue up ~6% YoY; management lifted revenue outlook. PR Newswire: ADP Q2 Results
• Positive Sentiment: Large $6 billion share buyback remains a near-term support catalyst by reducing share count and signaling management confidence. MarketBeat: Buyback Article
• Positive Sentiment: Product/innovation push — ADP launched new AI “ADP Assist” agents aimed at improving payroll/HR automation, which supports long-term revenue and margin expansion potential. PR Newswire: ADP AI Launch
• Neutral Sentiment: New coverage initiated at Cantor Fitzgerald — adds another sell-side voice but not yet a material catalyst. AmericanBankingNews: Coverage Initiated
• Negative Sentiment: Morgan Stanley lowered its price target from $311 to $274 and moved to an “equal weight” rating — one of several same?day cuts pressuring the stock. Benzinga: Morgan Stanley PT Cut
• Negative Sentiment: Citigroup cut its target from $303 to $265 and set a “neutral” rating — another immediate headwind for sentiment. Benzinga: Citigroup PT Cut
• Negative Sentiment: JPMorgan trimmed its target from $295 to $275 and holds an “underweight” stance — contributing to the selloff. Benzinga: JPMorgan PT Cut
• Negative Sentiment: Wells Fargo reduced its target to $262 and kept an “underweight” rating. Benzinga: Wells Fargo PT Cut TickerReport: Wells Fargo Note
• Negative Sentiment: Stifel trimmed its target from $290 to $280 and moved to a “hold” — part of a cluster of downgrades weighing on investor outlook. Benzinga: Stifel PT Cut

Analyst Ratings Changes

Several brokerages recently issued reports on ADP. Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. JPMorgan Chase & Co. reduced their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday. Citigroup decreased their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, Cantor Fitzgerald began coverage on Automatic Data Processing in a report on Tuesday. They set an “overweight” rating and a $306.00 price target for the company. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $295.38.

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.