Automatic Data Processing, Inc. $ADP Stock Position Lowered by ProShare Advisors LLC

ProShare Advisors LLC cut its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 8.4% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,123,872 shares of the business services provider’s stock after selling 103,377 shares during the quarter. ProShare Advisors LLC owned approximately 0.28% of Automatic Data Processing worth $290,026,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $13,283,000. Royal Capital Wealth Management LLC bought a new stake in Automatic Data Processing in the 2nd quarter worth about $1,226,000. Canada Pension Plan Investment Board bought a new position in Automatic Data Processing during the second quarter worth about $152,706,000. Fulton Bank N.A. raised its position in Automatic Data Processing by 192.0% during the second quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider’s stock valued at $1,605,000 after purchasing an additional 4,711 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in Automatic Data Processing during the 2nd quarter valued at approximately $1,231,175,000. Institutional investors own 80.03% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. TD Cowen boosted their price target on Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a research note on Monday, July 6th. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $285.00 to $305.00 and gave the company a “hold” rating in a report on Thursday. UBS Group lifted their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. BMO Capital Markets raised 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. Finally, Cantor Fitzgerald boosted their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $283.27.

Automatic Data Processing Stock Up 2.7%

NASDAQ ADP opened at $293.84 on Friday. The company’s 50 day simple moving average is $277.25 and its 200 day simple moving average is $240.83. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $309.40. The company has a market capitalization of $116.43 billion, a P/E ratio of 26.05, a PEG ratio of 2.65 and a beta of 0.83. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.03 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, topping 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 business had revenue of $5.49 billion during the quarter, compared to analysts’ expectations of $5.48 billion. During the same period in the prior year, the firm posted $2.49 EPS. Automatic Data Processing’s quarterly revenue was up 6.1% compared to the same quarter last year. Equities research analysts expect that Automatic Data Processing, Inc. will post 12.36 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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

More 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

Insider Buying and Selling at Automatic Data Processing

In related news, VP Brian Michaud sold 120 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the transaction, the vice president directly owned 18,442 shares of the company’s stock, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their position. The transaction was disclosed in a legal 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, CEO Maria Black sold 29,810 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the sale, the chief executive officer directly owned 80,624 shares of the company’s stock, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. 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. Insiders sold 31,359 shares of company stock valued at $8,809,422 over the last 90 days. 0.15% of the stock is owned by corporate insiders.

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.