Automatic Data Processing, Inc. $ADP Shares Sold by Hemenway Trust Co LLC

Hemenway Trust Co LLC lessened its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.0% during the third quarter, HoldingsChannel reports. The firm owned 138,135 shares of the business services provider’s stock after selling 5,731 shares during the quarter. Automatic Data Processing accounts for approximately 3.1% of Hemenway Trust Co LLC’s investment portfolio, making the stock its 11th largest holding. Hemenway Trust Co LLC’s holdings in Automatic Data Processing were worth $40,543,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Laurel Wealth Advisors LLC boosted its stake in Automatic Data Processing by 30,110.7% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after buying an additional 4,653,304 shares during the last quarter. Norges Bank purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth about $696,841,000. Amundi boosted its position in shares of Automatic Data Processing by 24.9% in the second quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock worth $948,549,000 after acquiring an additional 619,829 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in Automatic Data Processing by 26.6% in the second quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock valued at $867,445,000 after purchasing an additional 591,800 shares during the period. Finally, Invesco Ltd. grew its holdings in Automatic Data Processing by 13.5% in the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock valued at $1,411,449,000 after purchasing an additional 544,968 shares during the period. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Analysts Set New Price Targets

ADP has been the topic of a number of recent analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. JPMorgan Chase & Co. cut their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Wells Fargo & Company reduced their target price on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Jefferies Financial Group restated an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Finally, Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective on the stock. Two equities 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. According to data from MarketBeat.com, Automatic Data Processing presently has an average rating of “Hold” and an average price target of $290.00.

Insider Activity

In other news, VP David Foskett sold 266 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 3,515 shares of company stock worth $887,074 over the last three months. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Stock Up 1.9%

Shares of NASDAQ ADP opened at $217.21 on Thursday. The stock has a fifty day moving average price of $249.88 and a 200 day moving average price of $270.47. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 12-month low of $208.62 and a 12-month high of $329.93. The company has a market cap of $87.46 billion, a P/E ratio of 20.89 and a beta of 0.85.

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, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter in the previous year, the firm posted $2.35 earnings per share. The firm’s quarterly 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. Research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

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

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.