Automatic Data Processing, Inc. $ADP Stock Acquired by VestGen Advisors LLC

VestGen Advisors LLC grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 168.6% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 8,395 shares of the business services provider’s stock after purchasing an additional 5,270 shares during the period. VestGen Advisors LLC’s holdings in Automatic Data Processing were worth $2,166,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of ADP. Vaquero Private Wealth Ltd. purchased a new stake in Automatic Data Processing during the 3rd quarter worth about $64,000. AMI Investment Management Inc. grew its position in Automatic Data Processing by 3.6% during the 3rd quarter. AMI Investment Management Inc. now owns 1,140 shares of the business services provider’s stock worth $294,000 after purchasing an additional 40 shares during the last quarter. William Mack & Associates Inc. acquired a new position in Automatic Data Processing in the 3rd quarter valued at about $67,000. Victory Financial Group LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth approximately $288,000. Finally, Asset Management One Co. Ltd. raised its position in Automatic Data Processing by 2.2% during the 3rd quarter. Asset Management One Co. Ltd. now owns 197,371 shares of the business services provider’s stock worth $50,934,000 after buying an additional 4,245 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Trading Up 0.2%

NASDAQ:ADP opened at $286.08 on Friday. The stock has a fifty day moving average price of $276.96 and a two-hundred day moving average price of $240.67. The stock has a market capitalization of $113.36 billion, a price-to-earnings ratio of 25.36, a PEG ratio of 2.58 and a beta of 0.83. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $309.40.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping the consensus estimate of $2.77 by $0.05. The company had revenue of $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The business’s revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm earned $2.49 EPS. As a group, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.29 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were issued a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. Automatic Data Processing’s payout ratio is currently 60.28%.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Wells Fargo & Company raised their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $290.00 price target on shares of Automatic Data Processing in a research note on Thursday. Citigroup increased their price target on shares of Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a report on Thursday. TD Cowen raised their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a research report on Monday, July 6th. Finally, Cantor Fitzgerald lifted their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $283.27.

Insider Activity at Automatic Data Processing

In other news, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares in the company, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president directly owned 18,824 shares of the company’s stock, valued at $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 31,359 shares of company stock worth $8,809,422 in the last ninety days. Corporate insiders own 0.15% of the company’s stock.

Key Automatic Data Processing News

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now expects adjusted earnings-per-share growth of approximately 10%–12% for fiscal 2027 and increased its client-funds interest revenue outlook to $1.59 billion–$1.61 billion. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: First-quarter beat: Fiscal Q1 earnings were $2.82 per share versus the $2.77 consensus, while revenue reached $5.49 billion, slightly above estimates and up 6.1% year over year. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Growth initiatives: ADP’s earnings call highlighted momentum from AI adoption, while a new PNC Bank partnership will embed ADP payroll, HR and benefits tools into PNC’s digital banking platform, potentially expanding its small-business reach. PNC Bank and ADP announce embedded payroll solution
• Positive Sentiment: Some analysts raised targets: Guggenheim reaffirmed a Buy rating with a $340 target, while Stifel raised its target to $305 from $285. These targets imply additional upside and reinforce the positive reaction to the guidance increase.
• Neutral Sentiment: Mixed but generally higher targets: Citigroup raised its target to $295 while maintaining Neutral, Morgan Stanley lifted its target to $288 with an Equal Weight rating, and RBC assigned a $290 target with Sector Perform. The modest targets suggest analysts see limited near-term upside at the current valuation.
• Negative Sentiment: Valuation concerns remain: Jefferies raised its target to $250 but retained an Underperform rating, indicating that some analysts believe ADP’s valuation and slowing organic growth could limit gains despite the earnings beat.

About Automatic Data Processing

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.