Hilltop Holdings Inc. Acquires New Stake in Automatic Data Processing, Inc. $ADP

Hilltop Holdings Inc. acquired a new position in Automatic Data Processing, Inc. (NASDAQ:ADP) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 18,030 shares of the business services provider’s stock, valued at approximately $5,292,000.

Several other large investors also recently added to or reduced their stakes in the business. Gotham Asset Management LLC raised its position in Automatic Data Processing by 27.4% in the third quarter. Gotham Asset Management LLC now owns 137,130 shares of the business services provider’s stock worth $40,248,000 after acquiring an additional 29,514 shares during the period. Fayez Sarofim & Co grew its position in shares of Automatic Data Processing by 1.2% during the 3rd quarter. Fayez Sarofim & Co now owns 1,352,576 shares of the business services provider’s stock valued at $396,981,000 after acquiring an additional 15,383 shares during the period. Distillate Capital Partners LLC purchased a new stake in shares of Automatic Data Processing in the 3rd quarter worth $21,699,000. Element Capital Management LLC bought a new position in Automatic Data Processing in the 3rd quarter worth $501,000. Finally, Elevation Point Wealth Partners LLC lifted its position in Automatic Data Processing by 181.5% during the third quarter. Elevation Point Wealth Partners LLC now owns 16,789 shares of the business services provider’s stock valued at $4,950,000 after purchasing an additional 10,824 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the business’s 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 sale, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Christopher D’ambrosio sold 543 shares of the company’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 value of $142,423.47. Following the sale, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% 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. 0.20% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of recent research reports. Wells Fargo & Company cut their price objective on 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 reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Morgan Stanley dropped their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday, January 29th. 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 research report on Thursday, January 29th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $290.00.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $208.52 on Monday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing, Inc. has a 1-year low of $203.26 and a 1-year high of $329.93. The business has a 50 day simple moving average of $234.58 and a two-hundred day simple moving average of $259.63. The stock has a market capitalization of $83.96 billion, a PE ratio of 20.05 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last posted 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 firm had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the company earned $2.35 EPS. The company’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, research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its board has authorized a stock buyback 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 shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.3%. Automatic Data Processing’s payout ratio is 65.38%.

Automatic Data Processing 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.