Automatic Data Processing, Inc. $ADP Shares Purchased by Mitchell Capital Management Co.

Mitchell Capital Management Co. raised its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 325.0% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 6,800 shares of the business services provider’s stock after acquiring an additional 5,200 shares during the period. Mitchell Capital Management Co.’s holdings in Automatic Data Processing were worth $1,996,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of the stock. Drake & Associates LLC increased its holdings in Automatic Data Processing by 60.7% in the 3rd quarter. Drake & Associates LLC now owns 3,291 shares of the business services provider’s stock worth $966,000 after acquiring an additional 1,243 shares in the last quarter. Cibc World Market Inc. grew its position in shares of Automatic Data Processing by 86.6% in the third quarter. Cibc World Market Inc. now owns 93,586 shares of the business services provider’s stock valued at $27,467,000 after purchasing an additional 43,438 shares during the period. Caprock Group LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $9,042,000. ING Groep NV increased its stake in shares of Automatic Data Processing by 49.1% during the third quarter. ING Groep NV now owns 273,487 shares of the business services provider’s stock worth $80,268,000 after purchasing an additional 90,073 shares in the last quarter. Finally, Krilogy Financial LLC acquired a new position in shares of Automatic Data Processing during the 3rd quarter worth about $314,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have commented on ADP shares. JPMorgan Chase & Co. reduced their target price 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. Wells Fargo & Company dropped their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Citigroup lowered their target price 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. Finally, Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Two investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Price Performance

ADP stock opened at $217.57 on Thursday. Automatic Data Processing, Inc. has a 1 year low of $216.65 and a 1 year high of $329.93. The firm has a market capitalization of $87.60 billion, a P/E ratio of 20.92 and a beta of 0.85. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The business’s 50-day moving average is $254.54 and its two-hundred day moving average is $273.77.

Automatic Data Processing (NASDAQ:ADP) last issued its 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. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm 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 was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company 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. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.1%. Automatic Data Processing’s payout ratio is presently 65.38%.

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

Insiders Place Their Bets

In related news, VP David Foskett sold 266 shares of the stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president 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. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is owned by corporate insiders.

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.