First Trust Advisors LP Buys 55,051 Shares of Automatic Data Processing, Inc. $ADP

First Trust Advisors LP increased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 2.7% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,108,126 shares of the business services provider’s stock after buying an additional 55,051 shares during the quarter. First Trust Advisors LP owned about 0.52% of Automatic Data Processing worth $618,735,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in ADP. Laurel Wealth Advisors LLC lifted its position in shares of Automatic Data Processing by 30,110.7% during the 2nd 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 acquiring an additional 4,653,304 shares during the period. Norges Bank bought a new position in shares of Automatic Data Processing in the second quarter worth $696,841,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Automatic Data Processing by 32.1% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider’s stock worth $960,831,000 after purchasing an additional 796,379 shares during the period. Amundi lifted its position in Automatic Data Processing by 24.9% during the second quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock worth $948,549,000 after purchasing an additional 619,829 shares during the period. Finally, JPMorgan Chase & Co. lifted its position in Automatic Data Processing by 26.6% during the second quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock worth $867,445,000 after purchasing an additional 591,800 shares during the period. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Trading Up 1.6%

ADP opened at $226.29 on Friday. The company’s 50 day moving average is $238.92 and its 200-day moving average is $263.45. Automatic Data Processing, Inc. has a 1-year low of $203.26 and a 1-year high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The company has a market cap of $91.11 billion, a P/E ratio of 21.76 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter last year, the business posted $2.35 earnings per share. The company’s quarterly 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. Equities research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

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

Automatic Data Processing Announces Dividend

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 given a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 3.0%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Insider Transactions at Automatic Data Processing

In other news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP David Kwon sold 900 shares of the firm’s 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 owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders have 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.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ADP. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Citigroup lowered their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Stifel Nicolaus cut their target price 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. Finally, Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target on the stock. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus 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.