Automatic Data Processing, Inc. $ADP Stock Sold by Summit Global Investments

Summit Global Investments lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 35.2% during the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 4,218 shares of the business services provider’s stock after selling 2,294 shares during the quarter. Summit Global Investments’ holdings in Automatic Data Processing were worth $1,088,000 as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of the stock. MGO One Seven LLC raised its holdings in Automatic Data Processing by 9.1% in the 3rd quarter. MGO One Seven LLC now owns 15,139 shares of the business services provider’s stock valued at $3,907,000 after buying an additional 1,268 shares during the last quarter. Marin Bay Wealth Advisors LLC bought a new stake in Automatic Data Processing during the 3rd quarter worth approximately $232,000. Americana Partners LLC grew its holdings in Automatic Data Processing by 3.6% during the 3rd quarter. Americana Partners LLC now owns 36,145 shares of the business services provider’s stock worth $9,328,000 after acquiring an additional 1,254 shares during the last quarter. Aprio Wealth Management LLC grew its holdings in Automatic Data Processing by 18.5% during the 3rd quarter. Aprio Wealth Management LLC now owns 4,963 shares of the business services provider’s stock worth $1,281,000 after acquiring an additional 774 shares during the last quarter. Finally, State of Wyoming acquired a new position in Automatic Data Processing in the 3rd quarter valued at approximately $189,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. 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 note on Wednesday, July 29th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $290.00 price objective on shares of Automatic Data Processing in a research note on Thursday. Jefferies Financial Group raised their target price on Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a research report on Wednesday, October 28th. Wells Fargo & Company upped their price target on 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. Finally, Morgan Stanley lifted their price objective on Automatic Data Processing from $286.00 to $288.00 and gave the stock an “equal weight” rating in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and an average target price of $283.27.

Insiders Place Their Bets

In other news, VP David Kwon sold 798 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total transaction of $223,440.00. Following the completion of the sale, the vice president owned 13,193 shares of the company’s stock, valued at $3,694,040. This trade represents a 5.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 31,359 shares of company stock valued at $8,809,422 in the last ninety days. 0.15% of the stock is owned by corporate insiders.

Key Stories Impacting Automatic Data Processing

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 Stock Performance

ADP stock opened at $293.84 on Monday. The stock has a 50-day moving average price of $277.25 and a 200-day moving average price of $240.83. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $309.40. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98. The firm has a market cap of $116.43 billion, a PE ratio of 26.05, a price-to-earnings-growth ratio of 2.64 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) 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 company had revenue of $5.49 billion for the quarter, compared to the consensus estimate of $5.48 billion. During the same period in the previous year, the business earned $2.49 EPS. The firm’s revenue was up 6.1% compared to the same quarter last year. As a group, equities research analysts expect that Automatic Data Processing, Inc. will post 12.36 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing 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.