Automatic Data Processing, Inc. $ADP Shares Bought by JPMorgan Chase & Co.

JPMorgan Chase & Co. grew its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.3% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,904,249 shares of the business services provider’s stock after buying an additional 91,612 shares during the quarter. JPMorgan Chase & Co. owned 0.72% of Automatic Data Processing worth $852,423,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Mid American Wealth Advisory Group Inc. purchased a new position in shares of Automatic Data Processing in the second quarter valued at approximately $26,000. Howard Hughes Medical Institute acquired a new stake in Automatic Data Processing during the 2nd quarter worth approximately $27,000. Solstein Capital LLC purchased a new position in Automatic Data Processing in the 2nd quarter valued at approximately $28,000. Westside Investment Management Inc. grew its stake in shares of Automatic Data Processing by 80.0% in the second 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 in the last quarter. Finally, TruNorth Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth $28,000. Hedge funds and other 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 Automatic Data Processing stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. The trade was a 6.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 3,515 shares of company stock worth $887,074. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $213.08 on Wednesday. The stock’s 50-day simple moving average is $250.72 and its 200-day simple moving average is $270.85. The firm has a market capitalization of $85.79 billion, a PE ratio of 20.49 and a beta of 0.85. Automatic Data Processing, Inc. has a fifty-two week low of $208.62 and a fifty-two week high of $329.93. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period in the prior year, the firm posted $2.35 earnings per share. The firm’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities research analysts forecast 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 share buyback 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 reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors 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 dividend on an annualized basis and a yield of 3.2%. Automatic Data Processing’s payout ratio is 65.38%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on ADP shares. Wells Fargo & Company decreased their target price on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Stifel Nicolaus decreased their price objective on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research note on Monday, February 9th. Cantor Fitzgerald initiated coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective for the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, Citigroup decreased their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Two equities 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. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target 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.