Hendershot Investments Inc. Purchases 11,163 Shares of Automatic Data Processing, Inc. $ADP

Hendershot Investments Inc. increased its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 16.2% in the fourth quarter, Holdings Channel.com reports. The fund owned 79,898 shares of the business services provider’s stock after acquiring an additional 11,163 shares during the quarter. Automatic Data Processing makes up about 2.6% of Hendershot Investments Inc.’s holdings, making the stock its 11th biggest holding. Hendershot Investments Inc.’s holdings in Automatic Data Processing were worth $20,552,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Argo Wealth Advisory LLC purchased a new stake in Automatic Data Processing in the fourth quarter valued at approximately $2,409,000. Mirae Asset Global Investments Co. Ltd. raised its stake in Automatic Data Processing by 27.0% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 234,273 shares of the business services provider’s stock valued at $60,262,000 after purchasing an additional 49,774 shares in the last quarter. Xcel Wealth Management LLC raised its stake in Automatic Data Processing by 50.2% in the fourth quarter. Xcel Wealth Management LLC now owns 1,215 shares of the business services provider’s stock valued at $313,000 after purchasing an additional 406 shares in the last quarter. Prosperity Financial Group Inc. raised its stake in Automatic Data Processing by 19.7% in the fourth quarter. Prosperity Financial Group Inc. now owns 874 shares of the business services provider’s stock valued at $225,000 after purchasing an additional 144 shares in the last quarter. Finally, Nicholson Wealth Management Group LLC raised its stake in Automatic Data Processing by 15.2% in the fourth quarter. Nicholson Wealth Management Group LLC now owns 7,152 shares of the business services provider’s stock valued at $1,840,000 after purchasing an additional 946 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Insider Activity at Automatic Data Processing

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

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price on the stock. JPMorgan Chase & Co. decreased their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Stifel Nicolaus decreased their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. Guggenheim assumed coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They set a “buy” rating and a $270.00 price target on the stock. Finally, Citigroup decreased their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $278.62.

Automatic Data Processing Stock Up 1.8%

Shares of Automatic Data Processing stock opened at $200.39 on Friday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The stock has a market capitalization of $80.69 billion, a price-to-earnings ratio of 19.27 and a beta of 0.85. The company’s 50 day moving average price is $209.78 and its 200-day moving average price is $244.74.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion for 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 firm’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing announced that its Board of Directors has approved a share buyback plan 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 reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management 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. Investors of record on Friday, June 12th will be issued a $1.70 dividend. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a yield of 3.4%. Automatic Data Processing’s payout ratio is 65.38%.

Automatic Data Processing Company 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.