David Kwon Sells 806 Shares of Automatic Data Processing (NASDAQ:ADP) Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP David Kwon sold 806 shares of the firm’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president directly owned 11,187 shares of the company’s stock, valued at $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link.

David Kwon also recently made the following trade(s):

• On Tuesday, January 6th, David Kwon sold 900 shares of Automatic Data Processing stock. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00.

Automatic Data Processing Trading Up 0.7%

Shares of ADP stock opened at $260.20 on Friday. Automatic Data Processing, Inc. has a 1-year low of $247.18 and a 1-year high of $329.93. The firm has a market cap of $105.24 billion, a PE ratio of 25.69 and a beta of 0.86. The company has a 50-day moving average of $257.80 and a two-hundred day moving average of $281.89. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP) last issued 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 firm had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.14 billion. During the same period in the prior year, the business posted $2.33 EPS. The business’s revenue for the quarter 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, analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. Automatic Data Processing’s payout ratio is presently 67.13%.

Automatic Data Processing announced that its board 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 reacquire up to 5.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Trending Headlines about Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Board authorized a $6.0 billion share repurchase (≈5.8% of outstanding shares). Large buyback reduces float, supports EPS, and signals management thinks shares are undervalued — a common catalyst for upward pressure on the stock. ADP AUTHORIZED TO PURCHASE $6 BILLION OF ITS COMMON STOCK
• Positive Sentiment: Board declared the regular quarterly dividend of $1.70/share (payable April 1, 2026; record date March 13). The steady dividend (≈2.6% yield) supports income investor demand and signals continued free-cash-flow confidence. ADP Declares Regular Quarterly Dividend
• Neutral Sentiment: Investor commentary and “bull case” pieces are circulating that outline upside from AI/data products and cost-cutting exposure; these can attract interest but are qualitative and depend on execution. Automatic Data Processing, Inc. (ADP): A Bull Case Theory
• Neutral Sentiment: ADP’s National Employment Report and macro payroll data highlight continued demand for payroll/HR services — supportive for the long-term sales pipeline but not an immediate earnings surprise. ADP National Employment Report Preliminary Estimate
• Negative Sentiment: Insider sale — VP David Kwon sold 806 shares (~$213k) on Jan 12, reducing his stake by ~6.7%. Single executive sales can be viewed negatively by some investors, though amounts are modest relative to institutional ownership. SEC Filing — David Kwon Sale
• Negative Sentiment: Insider sale — VP Christopher D’ambrosio sold 543 shares (~$142k) on Jan 13, a ~5.2% reduction in his position. Like the other sale, it’s small versus ADP’s float but may be noted by short-term traders. SEC Filing — Christopher D’ambrosio Sale

Institutional Investors Weigh In On Automatic Data Processing

A number of large investors have recently modified their holdings of the company. Jacobsen Capital Management grew its stake in shares of Automatic Data Processing by 3.8% during the second quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock worth $280,000 after purchasing an additional 33 shares in the last quarter. Signature Wealth Management Group lifted its holdings in Automatic Data Processing by 2.3% during the 2nd quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock worth $447,000 after buying an additional 33 shares during the last quarter. Ameritas Advisory Services LLC boosted its position in shares of Automatic Data Processing by 2.1% during the 2nd quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider’s stock worth $502,000 after acquiring an additional 34 shares in the last quarter. PGIM Custom Harvest LLC increased its holdings in shares of Automatic Data Processing by 4.9% in the 2nd quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock valued at $223,000 after acquiring an additional 34 shares during the last quarter. Finally, Accurate Wealth Management LLC increased its holdings in shares of Automatic Data Processing by 3.0% in the 2nd quarter. Accurate Wealth Management LLC now owns 1,185 shares of the business services provider’s stock valued at $362,000 after acquiring an additional 35 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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

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.