David Kwon Sells 900 Shares of Automatic Data Processing (NASDAQ:ADP) Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP David Kwon sold 900 shares of the stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the sale, the vice president directly owned 11,993 shares in the company, valued at $3,118,180. This represents a 6.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Automatic Data Processing Stock Performance

Shares of ADP opened at $266.02 on Friday. Automatic Data Processing, Inc. has a 1 year low of $247.18 and a 1 year high of $329.93. The company has a market cap of $107.59 billion, a price-to-earnings ratio of 26.26 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a fifty day moving average of $257.60 and a 200-day moving average of $283.13.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. The business had revenue of $5.18 billion for the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The company’s revenue for the quarter was up 7.1% compared to the same quarter last year. During the same quarter last year, the company earned $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 1st. Stockholders of record on Friday, December 12th were issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.54. The ex-dividend date of this dividend was Friday, December 12th. Automatic Data Processing’s dividend payout ratio is presently 67.13%.

Analyst Ratings Changes

Several analysts recently commented on ADP shares. JPMorgan Chase & Co. lowered their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. UBS Group lowered their price target on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a report on Wednesday, September 17th. Citigroup began coverage on shares of Automatic Data Processing in a report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective for the company. Finally, Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Two research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and an average price target of $306.42.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ADP. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing in the 3rd quarter worth $25,000. Harbor Asset Planning Inc. purchased a new stake in shares of Automatic Data Processing during the second quarter valued at $26,000. Mid American Wealth Advisory Group Inc. acquired a new position in shares of Automatic Data Processing in the 2nd quarter valued at $26,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing in the 2nd quarter worth about $27,000. Finally, Solstein Capital LLC purchased a new position in Automatic Data Processing in the 2nd quarter worth about $28,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company 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.