Fayez Sarofim & Co Buys 15,383 Shares of Automatic Data Processing, Inc. $ADP

Fayez Sarofim & Co grew its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.2% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,352,576 shares of the business services provider’s stock after buying an additional 15,383 shares during the quarter. Fayez Sarofim & Co owned approximately 0.33% of Automatic Data Processing worth $396,981,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in ADP. Imprint Wealth LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter valued at about $25,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing in the 2nd quarter worth approximately $27,000. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing in the 3rd quarter worth approximately $28,000. Cloud Capital Management LLC bought a new stake in Automatic Data Processing during the 3rd quarter worth approximately $29,000. Finally, Y.D. More Investments Ltd bought a new stake in Automatic Data Processing during the 3rd quarter worth approximately $32,000. Institutional investors own 80.03% of the company’s stock.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction 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. This represents a 2.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP David Kwon sold 806 shares of the firm’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the transaction, the vice president owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on ADP shares. Citigroup dropped their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Jefferies Financial Group restated an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. JPMorgan Chase & Co. lowered their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Morgan Stanley dropped their target price on shares of 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. Finally, Wells Fargo & Company cut their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Two equities 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 company currently has an average rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Trading Up 0.5%

ADP stock opened at $208.52 on Monday. Automatic Data Processing, Inc. has a 1-year low of $203.26 and a 1-year high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The company has a market capitalization of $83.96 billion, a price-to-earnings ratio of 20.05 and a beta of 0.86. The business has a 50 day simple moving average of $234.58 and a two-hundred day simple moving average of $259.63.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company’s revenue was up 6.2% on a year-over-year basis. During the same period last year, the firm posted $2.35 EPS. 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 declared that its Board of Directors has approved a share repurchase plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

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.