Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 543 Shares of Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction that occurred 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 directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Automatic Data Processing Trading Up 0.6%

NASDAQ:ADP traded up $1.43 during midday trading on Wednesday, hitting $258.50. 1,894,166 shares of the company traded hands, compared to its average volume of 1,837,532. The firm’s fifty day moving average is $257.67 and its 200-day moving average is $282.21. Automatic Data Processing, Inc. has a 12-month low of $247.18 and a 12-month high of $329.93. The firm has a market capitalization of $104.55 billion, a P/E ratio of 25.52 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62.

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

Automatic Data Processing Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 1st. Shareholders of record on Friday, December 12th were given a dividend of $1.70 per share. This represents a $6.80 annualized dividend 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 was Friday, December 12th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 67.13%.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. JPMorgan Chase & Co. dropped their price objective on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Wells Fargo & Company decreased their target price on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. Finally, Citigroup assumed coverage on Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target on the stock. Two research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $306.42.

Hedge Funds Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Laurel Wealth Advisors LLC grew its position in shares of 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 Automatic Data Processing in the second quarter worth $696,841,000. Wellington Management Group LLP increased its position in shares of Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Automatic Data Processing by 32.1% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider’s stock valued at $960,831,000 after purchasing an additional 796,379 shares during the last quarter. Finally, Amundi lifted its holdings in shares of Automatic Data Processing by 24.9% during the 2nd quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock valued at $948,549,000 after purchasing an additional 619,829 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

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.