Douglass Winthrop Advisors LLC Increases Holdings in Automatic Data Processing, Inc. $ADP

Douglass Winthrop Advisors LLC boosted its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 10.1% during the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 26,849 shares of the business services provider’s stock after buying an additional 2,459 shares during the period. Douglass Winthrop Advisors LLC’s holdings in Automatic Data Processing were worth $7,880,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Howard Hughes Medical Institute acquired a new stake in Automatic Data Processing during the second quarter worth about $27,000. TruNorth Capital Management LLC acquired a new position in Automatic Data Processing in the 3rd quarter valued at about $28,000. Cloud Capital Management LLC acquired a new position in Automatic Data Processing in the 3rd quarter valued at about $29,000. Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing in the 3rd quarter valued at approximately $32,000. Finally, AlphaQuest LLC acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $38,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

ADP stock opened at $213.00 on Thursday. The business’s 50-day moving average is $236.46 and its two-hundred day moving average is $261.28. 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 firm has a market capitalization of $85.76 billion, a P/E ratio of 20.48 and a beta of 0.86. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the previous year, the company posted $2.35 earnings per share. 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 declared that its board has approved a share repurchase plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

Automatic Data Processing Announces Dividend

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

Insider Activity

In related news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the transaction, the vice president owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This represents a 5.15% 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 Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on 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 sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,515 shares of company stock valued at $887,074 over the last quarter. Company insiders own 0.20% of the company’s stock.

Wall Street Analyst Weigh In

ADP has been the topic of several analyst reports. JPMorgan Chase & Co. reduced their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Citigroup dropped 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 research report on Thursday, January 29th. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Stifel Nicolaus cut their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. Finally, Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target for the company. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $290.00.

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.