Automatic Data Processing (NASDAQ:ADP) VP Sells $234,000.00 in Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP David Kwon sold 900 shares of the business’s stock in a transaction 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 sale, the vice president directly owned 11,993 shares in the company, valued at approximately $3,118,180. This trade 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 is available at this hyperlink.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $266.02 on Friday. Automatic Data Processing, Inc. has a 12 month low of $247.18 and a 12 month high of $329.93. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62. The stock has a market cap of $107.59 billion, a PE ratio of 26.26 and a beta of 0.86. The business has a fifty day simple moving average of $257.60 and a 200-day simple moving average of $282.93.

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

Automatic Data Processing Increases Dividend

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC raised its position in shares of Automatic Data Processing by 92.1% in the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after purchasing an additional 4,808 shares during the period. Bison Wealth LLC raised its holdings in Automatic Data Processing by 22.8% in the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock worth $1,073,000 after acquiring an additional 681 shares during the period. Signature Estate & Investment Advisors LLC lifted its position in Automatic Data Processing by 5.6% during the 1st quarter. Signature Estate & Investment Advisors LLC now owns 1,576 shares of the business services provider’s stock worth $482,000 after acquiring an additional 84 shares during the last quarter. SCS Capital Management LLC acquired a new position in Automatic Data Processing during the 1st quarter worth $2,831,000. Finally, Advisory Alpha LLC boosted its holdings in Automatic Data Processing by 130.2% during the first quarter. Advisory Alpha LLC now owns 4,416 shares of the business services provider’s stock valued at $1,349,000 after acquiring an additional 2,498 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ADP. Wells Fargo & Company decreased their target price on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. UBS Group cut their price objective on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, September 17th. Citigroup initiated coverage on Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 target price on the stock. JPMorgan Chase & Co. cut their price target on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Two investment 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. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $306.42.

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.