Automatic Data Processing (NASDAQ:ADP) VP Sells $142,423.47 in Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) 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 value of $142,423.47. Following the completion of the transaction, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP traded up $1.43 during trading on Wednesday, hitting $258.50. The company’s stock had a trading volume of 1,894,166 shares, compared to its average volume of 1,837,532. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a market cap of $104.55 billion, a price-to-earnings ratio of 25.52 and a beta of 0.86. The company has a 50-day moving average of $257.67 and a 200-day moving average of $282.21. Automatic Data Processing, Inc. has a 12 month low of $247.18 and a 12 month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, beating analysts’ consensus estimates of $2.44 by $0.05. The business had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The firm’s revenue was up 7.1% on a year-over-year basis. During the same period in the prior year, the company earned $2.33 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, January 1st. Investors of record on Friday, December 12th were given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 2.6%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.54. The ex-dividend date was Friday, December 12th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 67.13%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Laurel Wealth Advisors LLC boosted its stake in Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock valued at $1,439,845,000 after buying an additional 4,653,304 shares during the last quarter. Norges Bank bought a new position in Automatic Data Processing during the second quarter valued at $696,841,000. Wellington Management Group LLP grew its stake in shares of Automatic Data Processing by 47.8% in the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after buying an additional 2,208,927 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Automatic Data Processing by 32.1% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider’s stock worth $960,831,000 after buying an additional 796,379 shares during the last quarter. Finally, Amundi raised its position 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 buying an additional 619,829 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of recent research reports. JPMorgan Chase & Co. cut their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Wells Fargo & Company dropped their price target on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Citigroup started coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 target price on the stock. Finally, Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Two analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $306.42.

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.