Brian Michaud Sells 1,000 Shares of Automatic Data Processing (NASDAQ:ADP) Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Brian Michaud sold 1,000 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website.

Automatic Data Processing Stock Down 2.0%

ADP stock traded down $4.74 during trading on Monday, hitting $226.62. 3,246,611 shares of the company’s stock were exchanged, compared to its average volume of 2,542,269. The business has a 50-day moving average price of $256.60 and a two-hundred day moving average price of $275.31. The stock has a market capitalization of $91.25 billion, a price-to-earnings ratio of 21.79 and a beta of 0.85. Automatic Data Processing, Inc. has a 52-week low of $224.93 and a 52-week high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter last year, the company earned $2.35 earnings per share. The firm’s revenue for the quarter 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. As a group, equities research analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The company also recently declared 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 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Automatic Data Processing declared that its board has initiated a share repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to buy up to 5.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Citigroup cut their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. 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 report on Thursday, January 29th. Jefferies Financial Group reissued 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. Finally, Stifel Nicolaus dropped their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $290.00.

Institutional Trading of Automatic Data Processing

A number of large investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its holdings in shares of Automatic Data Processing by 92.1% during the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock worth $2,935,000 after buying an additional 4,808 shares in the last quarter. Bison Wealth LLC raised its holdings in Automatic Data Processing by 22.8% in the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after acquiring an additional 681 shares during the last quarter. Robertson Stephens Wealth Management LLC lifted its stake in shares of Automatic Data Processing by 7.0% during the 2nd quarter. Robertson Stephens Wealth Management LLC now owns 2,256 shares of the business services provider’s stock worth $699,000 after purchasing an additional 147 shares during the period. Fifth Third Wealth Advisors LLC boosted its holdings in shares of Automatic Data Processing by 9.7% during the second quarter. Fifth Third Wealth Advisors LLC now owns 6,712 shares of the business services provider’s stock worth $2,070,000 after purchasing an additional 594 shares during the last quarter. Finally, Apollon Wealth Management LLC grew its position in shares of Automatic Data Processing by 3.7% in the second quarter. Apollon Wealth Management LLC now owns 15,009 shares of the business services provider’s stock valued at $4,629,000 after purchasing an additional 532 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.