Hemenway Trust Co LLC Trims Stock Position in Automatic Data Processing, Inc. $ADP

Hemenway Trust Co LLC trimmed its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.0% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 138,135 shares of the business services provider’s stock after selling 5,731 shares during the quarter. Automatic Data Processing comprises 3.1% of Hemenway Trust Co LLC’s investment portfolio, making the stock its 11th biggest holding. Hemenway Trust Co LLC’s holdings in Automatic Data Processing were worth $40,543,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also modified their holdings of the stock. Jacobsen Capital Management lifted its stake in shares of Automatic Data Processing by 3.8% in the 2nd quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock worth $280,000 after acquiring an additional 33 shares during the period. Signature Wealth Management Group boosted its holdings in Automatic Data Processing by 2.3% in the 2nd quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock valued at $447,000 after purchasing an additional 33 shares in the last quarter. PGIM Custom Harvest LLC boosted its holdings in Automatic Data Processing by 4.9% in the 2nd quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock valued at $223,000 after purchasing an additional 34 shares in the last quarter. Texas Yale Capital Corp. increased its position in Automatic Data Processing by 0.4% during the 2nd quarter. Texas Yale Capital Corp. now owns 8,333 shares of the business services provider’s stock worth $2,570,000 after purchasing an additional 35 shares during the period. Finally, Heritage Wealth Management Inc. raised its stake in shares of Automatic Data Processing by 1.1% during the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock worth $1,030,000 after buying an additional 35 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $217.21 on Thursday. The firm has a market capitalization of $87.46 billion, a PE ratio of 20.89 and a beta of 0.85. Automatic Data Processing, Inc. has a 52 week low of $208.62 and a 52 week high of $329.93. The firm’s 50-day simple moving average is $249.88 and its 200 day simple moving average is $270.47. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) 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 during the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter in the previous year, the business posted $2.35 earnings per share. The firm’s quarterly 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. On average, equities research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business 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 $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

Automatic Data Processing declared that its board has authorized a share repurchase plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms recently weighed in on ADP. Morgan Stanley decreased their price target on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 29th. 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. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target on the stock. Stifel Nicolaus cut their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday, February 9th. Finally, Citigroup decreased their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Two investment 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. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $290.00.

Insider Buying and Selling

In other news, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction 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 completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the sale, the vice president owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,515 shares of company stock worth $887,074 in the last quarter. Corporate insiders own 0.20% of the company’s stock.

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.