Rafferty Asset Management LLC Increases Stock Position in Automatic Data Processing, Inc. $ADP

Rafferty Asset Management LLC boosted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.3% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 78,376 shares of the business services provider’s stock after purchasing an additional 3,267 shares during the quarter. Rafferty Asset Management LLC’s holdings in Automatic Data Processing were worth $23,003,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of the business. Howard Hughes Medical Institute purchased a new stake in shares of Automatic Data Processing in the second quarter valued at about $27,000. Westside Investment Management Inc. increased its position in Automatic Data Processing by 80.0% in the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after acquiring an additional 40 shares during the period. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at approximately $28,000. Cloud Capital Management LLC acquired a new stake in Automatic Data Processing during the 3rd quarter worth approximately $29,000. Finally, Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing during the 3rd quarter worth approximately $32,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Buying and Selling

In other news, VP David Foskett sold 266 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president 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 transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP David Kwon sold 806 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the sale, the vice president owned 11,187 shares in the company, valued at approximately $2,962,317.60. This trade represents a 6.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 3,515 shares of company stock worth $887,074 in the last ninety days. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Stock Down 1.8%

ADP opened at $214.36 on Friday. Automatic Data Processing, Inc. has a one year low of $203.26 and a one year high of $329.93. The company has a market cap of $86.31 billion, a price-to-earnings ratio of 20.61 and a beta of 0.85. The business’s fifty day moving average is $242.81 and its two-hundred day moving average is $266.09. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data 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 net margin of 19.96% and a return on equity of 68.44%. The firm had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same period in the prior year, the company earned $2.35 EPS. The firm’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing announced that its board has initiated a stock repurchase program on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to buy up to 5.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on ADP. Citigroup dropped their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Stifel Nicolaus reduced their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research note on Monday, February 9th. Morgan Stanley lowered their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Finally, Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $290.00.

About Automatic Data Processing

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.