Aberdeen Group plc Sells 5,323 Shares of Automatic Data Processing, Inc. $ADP

Aberdeen Group plc reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.4% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 382,743 shares of the business services provider’s stock after selling 5,323 shares during the period. Aberdeen Group plc owned 0.09% of Automatic Data Processing worth $111,441,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in ADP. Mid American Wealth Advisory Group Inc. bought a new stake in Automatic Data Processing in the second quarter worth $26,000. Howard Hughes Medical Institute bought a new stake in shares of Automatic Data Processing in the 2nd quarter valued at about $27,000. Solstein Capital LLC purchased a new stake in Automatic Data Processing during the 2nd quarter valued at about $28,000. Westside Investment Management Inc. grew its position in Automatic Data Processing by 80.0% during the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after acquiring an additional 40 shares during the last quarter. Finally, TruNorth Capital Management LLC purchased a new position in Automatic Data Processing in the 3rd quarter worth approximately $28,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Activity

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the business’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 transaction of $142,423.47. Following the sale, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP David Kwon sold 900 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the transaction, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This represents a 6.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 3,515 shares of company stock valued at $887,074 over the last three months. Company insiders own 0.20% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Morgan Stanley cut their price objective on 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. Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective for the company. JPMorgan Chase & Co. dropped their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Wells Fargo & Company reduced their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Finally, Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Two investment 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. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Stock Up 1.0%

Shares of ADP stock opened at $212.11 on Monday. 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, Inc. has a one year low of $208.62 and a one year high of $329.93. The company’s fifty day moving average price is $252.56 and its 200-day moving average price is $272.15. The company has a market capitalization of $85.40 billion, a price-to-earnings ratio of 20.40 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last posted its 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 firm 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 business’s quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has authorized a stock repurchase program on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to buy up to 5.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 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.