Invesco Ltd. Buys 261,312 Shares of Automatic Data Processing, Inc. $ADP

Invesco Ltd. raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 5.7% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,837,993 shares of the business services provider’s stock after purchasing an additional 261,312 shares during the quarter. Invesco Ltd. owned 1.20% of Automatic Data Processing worth $1,419,951,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently modified their holdings of the company. Laurel Wealth Advisors LLC boosted its position in shares of Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock valued at $1,439,845,000 after buying an additional 4,653,304 shares during the last quarter. Norges Bank purchased a new stake in Automatic Data Processing in the 2nd quarter valued at $696,841,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Automatic Data Processing by 32.1% in 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 buying an additional 796,379 shares during the last quarter. Amundi lifted its stake in 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 acquiring an additional 619,829 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in Automatic Data Processing by 26.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock valued at $867,445,000 after acquiring an additional 591,800 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 900 shares of the stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the transaction, the vice president directly owned 11,993 shares of the company’s stock, valued at $3,118,180. This represents a 6.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP David Foskett sold 266 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. The trade was a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 3,515 shares of company stock valued at $887,074 in the last three months. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Trading Down 2.6%

Shares of Automatic Data Processing stock opened at $207.45 on Friday. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. The firm has a market cap of $83.53 billion, a PE ratio of 19.95 and a beta of 0.86. The stock has a fifty day moving average price of $235.47 and a 200-day moving average price of $260.90. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm’s quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing announced that its Board of Directors has initiated a stock buyback plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 3.3%. Automatic Data Processing’s payout ratio is currently 65.38%.

Analyst Ratings Changes

Several analysts have recently issued reports on ADP shares. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Morgan Stanley dropped their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Wells Fargo & Company reduced 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. Finally, Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective for the company. Two analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $290.00.

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.