California Public Employees Retirement System Has $490.72 Million Stock Position in Automatic Data Processing, Inc. $ADP

California Public Employees Retirement System increased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 18.4% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,671,963 shares of the business services provider’s stock after acquiring an additional 259,937 shares during the quarter. California Public Employees Retirement System’s holdings in Automatic Data Processing were worth $490,721,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. PGIM Custom Harvest LLC boosted its holdings in Automatic Data Processing by 4.9% in the 2nd 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 during the period. Heritage Wealth Management Inc. increased its holdings in shares of Automatic Data Processing by 1.1% during the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock worth $1,030,000 after purchasing an additional 35 shares during the period. Fairvoy Private Wealth LLC increased its holdings in shares of Automatic Data Processing by 4.2% during the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock worth $253,000 after purchasing an additional 35 shares during the period. Wealthspire Advisors LLC raised its position in shares of Automatic Data Processing by 0.4% during the second quarter. Wealthspire Advisors LLC now owns 9,335 shares of the business services provider’s stock valued at $2,879,000 after buying an additional 36 shares during the last quarter. Finally, Central Pacific Bank Trust Division raised its position in shares of Automatic Data Processing by 4.3% during the third quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider’s stock valued at $261,000 after buying an additional 37 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on ADP shares. Morgan Stanley decreased their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Wells Fargo & Company cut their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. JPMorgan Chase & Co. decreased their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Citigroup lowered their price objective on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. Finally, Cantor Fitzgerald initiated coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price for the company. Two investment analysts have rated the stock with a Buy rating, nine 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 presently has a consensus rating of “Hold” and an average target price of $290.00.

Insider Activity

In related news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. This trade represents a 5.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,515 shares of company stock worth $887,074 in the last quarter. 0.20% of the stock is owned by company insiders.

Automatic Data Processing Trading Up 0.5%

Shares of ADP opened at $208.52 on Friday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The stock has a market cap of $83.96 billion, a PE ratio of 20.05 and a beta of 0.86. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. The stock has a 50 day simple moving average of $234.58 and a 200-day simple moving average of $259.94.

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, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter in the previous year, the firm earned $2.35 EPS. Automatic Data Processing’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, sell-side analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.3%. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

Automatic Data Processing announced that its board has approved a share buyback program on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Automatic Data Processing Profile

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.