Convergence Investment Partners LLC Invests $868,000 in Automatic Data Processing, Inc. $ADP

Convergence Investment Partners LLC acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 2,957 shares of the business services provider’s stock, valued at approximately $868,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Harbor Asset Planning Inc. acquired a new stake in shares of Automatic Data Processing during the 2nd quarter valued at approximately $26,000. Mid American Wealth Advisory Group Inc. bought a new stake in Automatic Data Processing during the second quarter valued at $26,000. Howard Hughes Medical Institute acquired a new stake in shares of Automatic Data Processing during the second quarter worth $27,000. Solstein Capital LLC acquired a new stake in shares of Automatic Data Processing during the second quarter worth $28,000. Finally, Westside Investment Management Inc. lifted its position in shares of 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 worth $28,000 after buying an additional 40 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Citigroup decreased their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Morgan Stanley lowered their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a report on Thursday, January 29th. Cantor Fitzgerald began coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target on the stock. Finally, JPMorgan Chase & Co. reduced their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and an average target price of $290.83.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 806 shares of the stock in a transaction 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 completion of the transaction, the vice president directly owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. This trade represents a 6.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 2,249 shares of company stock valued at $589,852 over the last 90 days. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $247.56 on Tuesday. Automatic Data Processing, Inc. has a 12-month low of $243.68 and a 12-month high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The company has a market cap of $99.68 billion, a PE ratio of 23.80 and a beta of 0.85. The stock has a 50 day simple moving average of $258.31 and a 200-day simple moving average of $277.25.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (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 during the quarter, compared to analyst estimates of $5.34 billion. During the same quarter in the previous year, the firm posted $2.35 EPS. 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. On average, equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

Automatic Data Processing declared that its board has initiated a stock buyback plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Automatic Data Processing Profile

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.