Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Update

Automatic Data Processing, Inc. (NASDAQ:ADP) was the target of a significant increase in short interest in January. As of January 30th, there was short interest totaling 8,901,390 shares, an increase of 20.7% from the January 15th total of 7,377,784 shares. Based on an average daily volume of 2,810,636 shares, the days-to-cover ratio is currently 3.2 days. Approximately 2.2% of the shares of the company are short sold. Approximately 2.2% of the shares of the company are short sold. Based on an average daily volume of 2,810,636 shares, the days-to-cover ratio is currently 3.2 days.

Analysts Set New Price Targets

Several research analysts have issued reports on ADP shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. Wells Fargo & Company reduced their target price on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Morgan Stanley lowered their price target on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Finally, Citigroup dropped their price target on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. Two 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. Based on data from MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $290.00.

Automatic Data Processing Trading Up 0.5%

Shares of NASDAQ:ADP opened at $213.08 on Wednesday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $85.79 billion, a PE ratio of 20.49 and a beta of 0.85. Automatic Data Processing has a 1 year low of $208.62 and a 1 year high of $329.93. The firm has a fifty day moving average price of $250.72 and a 200 day moving average price of $270.85.

Automatic Data Processing (NASDAQ:ADP) last announced 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 quarterly revenue was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts expect that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has approved a stock repurchase plan 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 reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Insider Activity at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the transaction, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,515 shares of company stock valued at $887,074 in the last ninety days. Company insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Large investors have recently modified their holdings of the company. Brighton Jones LLC boosted its holdings in Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after purchasing an additional 4,808 shares during the period. Bison Wealth LLC raised its position in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after buying an additional 681 shares during the last quarter. Forvis Mazars Wealth Advisors LLC lifted its stake in shares of Automatic Data Processing by 1.1% in the second quarter. Forvis Mazars Wealth Advisors LLC now owns 3,709 shares of the business services provider’s stock valued at $1,144,000 after buying an additional 40 shares during the period. Stephens Inc. AR lifted its stake in shares of Automatic Data Processing by 2.7% in the second quarter. Stephens Inc. AR now owns 28,013 shares of the business services provider’s stock valued at $8,700,000 after buying an additional 724 shares during the period. Finally, Accretive Wealth Partners LLC grew its position in Automatic Data Processing by 0.6% during the second quarter. Accretive Wealth Partners LLC now owns 8,509 shares of the business services provider’s stock worth $2,624,000 after buying an additional 47 shares in the last quarter. 80.03% of the stock is owned by institutional investors.

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.