Vanguard Group Inc. Grows Stock Holdings in Automatic Data Processing, Inc. $ADP

Vanguard Group Inc. raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 0.9% during the 3rd quarter, HoldingsChannel reports. The firm owned 41,689,633 shares of the business services provider’s stock after acquiring an additional 389,451 shares during the period. Vanguard Group Inc. owned 0.10% of Automatic Data Processing worth $12,235,907,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. Mid American Wealth Advisory Group Inc. acquired a new stake in Automatic Data Processing in the second quarter valued at about $26,000. Howard Hughes Medical Institute acquired a new stake in shares of Automatic Data Processing in the 2nd quarter valued at approximately $27,000. Solstein Capital LLC purchased a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $28,000. Westside Investment Management Inc. grew its holdings in Automatic Data Processing by 80.0% during the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after acquiring an additional 40 shares during the period. Finally, TruNorth Capital Management LLC purchased a new position in Automatic Data Processing in the third quarter worth $28,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $212.11 on Monday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The business’s fifty day moving average price is $252.56 and its two-hundred day moving average price is $272.15. The stock has a market cap of $85.40 billion, a PE ratio of 20.40 and a beta of 0.85. Automatic Data Processing, Inc. has a one year low of $208.62 and a one year high of $329.93.

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, topping analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has authorized a stock buyback 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 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 stock is undervalued.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued 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 3.2%. Automatic Data Processing’s payout ratio is 65.38%.

Insider Activity

In other news, VP David Kwon sold 900 shares of the firm’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president owned 11,993 shares in the company, valued at $3,118,180. This trade represents a 6.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on 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 owned 9,998 shares of the company’s stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 3,515 shares of company stock worth $887,074. Corporate insiders own 0.20% of the company’s stock.

Analyst Ratings Changes

Several brokerages recently commented on ADP. Wells Fargo & Company reduced their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Stifel Nicolaus dropped their price objective on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research note on Monday, February 9th. 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. Finally, Cantor Fitzgerald assumed coverage on Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price on the stock. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus target price of $290.00.

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.