Automatic Data Processing, Inc. $ADP Position Trimmed by Modera Wealth Management LLC

Modera Wealth Management LLC lessened its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 2.2% in the third quarter, Holdings Channel.com reports. The fund owned 83,605 shares of the business services provider’s stock after selling 1,884 shares during the quarter. Modera Wealth Management LLC’s holdings in Automatic Data Processing were worth $21,575,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in ADP. BlackRock Inc. purchased a new position in shares of Automatic Data Processing in the 2nd quarter worth about $8,097,229,000. Bank of America Corp DE acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at about $1,231,175,000. Deutsche Bank AG acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at about $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Automatic Data Processing by 3.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider’s stock worth $952,112,000 after purchasing an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $725,513,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

ADP has been the subject of a number of research analyst reports. Jefferies Financial Group increased their target price on shares of Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a research report on Wednesday. BMO Capital Markets lifted their price target on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research report on Wednesday, July 29th. Wells Fargo & Company lifted their price target on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Cantor Fitzgerald boosted their price objective on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. Finally, Stifel Nicolaus increased their price objective on shares of Automatic Data Processing from $285.00 to $305.00 and gave the stock a “hold” rating in a research report on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $283.27.

Automatic Data Processing Trading Up 2.7%

NASDAQ:ADP opened at $293.84 on Friday. 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 one year low of $188.16 and a one year high of $309.40. The business’s 50-day simple moving average is $277.25 and its 200 day simple moving average is $240.83. The stock has a market cap of $116.43 billion, a price-to-earnings ratio of 26.05, a price-to-earnings-growth ratio of 2.58 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, beating analysts’ consensus estimates of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The firm had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. During the same quarter last year, the firm earned $2.49 EPS. Automatic Data Processing’s quarterly revenue was up 6.1% on a year-over-year basis. As a group, sell-side analysts predict that Automatic Data Processing, Inc. will post 12.34 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Friday, September 11th were given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing’s dividend payout ratio is presently 60.28%.

Insiders Place Their Bets

In other news, VP Brian Michaud sold 120 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president directly owned 18,442 shares in the company, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total transaction of $223,440.00. Following the sale, the vice president directly owned 13,193 shares of the company’s stock, valued at $3,694,040. The trade was a 5.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 31,359 shares of company stock valued at $8,809,422. 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 forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Automatic Data Processing Company Profile

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.