Clark Capital Management Group Inc. Acquires 2,575 Shares of Automatic Data Processing, Inc. $ADP

Clark Capital Management Group Inc. grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.6% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 160,923 shares of the business services provider’s stock after acquiring an additional 2,575 shares during the period. Clark Capital Management Group Inc.’s holdings in Automatic Data Processing were worth $47,231,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. Imprint Wealth LLC bought a new stake in shares of Automatic Data Processing during the 3rd quarter valued at $25,000. Howard Hughes Medical Institute bought a new position in Automatic Data Processing in the 2nd quarter worth about $27,000. TruNorth Capital Management LLC bought a new position in Automatic Data Processing in the 3rd quarter worth about $28,000. Cloud Capital Management LLC purchased a new position in Automatic Data Processing during the 3rd quarter valued at about $29,000. Finally, Y.D. More Investments Ltd purchased a new position in Automatic Data Processing during the 3rd quarter valued at about $32,000. 80.03% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

ADP has been the topic of a number of recent analyst reports. Morgan Stanley lowered their price target on shares of 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. 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. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. 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, Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target for the company. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $290.00.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 900 shares of the stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the transaction, the vice president directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is currently owned by corporate insiders.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $208.52 on Monday. Automatic Data Processing, Inc. has a 52-week low of $203.26 and a 52-week high of $329.93. The company has a fifty day moving average of $234.58 and a 200-day moving average of $259.63. The company has a market capitalization of $83.96 billion, a P/E ratio of 20.05 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter in the prior year, the firm earned $2.35 earnings per share. The firm’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, 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 company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

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

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.