Contravisory Investment Management Inc. Cuts Position in Automatic Data Processing, Inc. $ADP

Contravisory Investment Management Inc. decreased its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 15.9% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 21,100 shares of the business services provider’s stock after selling 4,004 shares during the quarter. Contravisory Investment Management Inc.’s holdings in Automatic Data Processing were worth $5,428,000 at the end of the most recent quarter.

A number of other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Automatic Data Processing by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock valued at $12,235,907,000 after purchasing an additional 389,451 shares during the last quarter. State Street Corp lifted its position in shares of Automatic Data Processing by 1.0% during the 2nd quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock worth $5,820,445,000 after purchasing an additional 187,415 shares during the last quarter. Capital Research Global Investors grew its stake in shares of Automatic Data Processing by 1.5% during the third quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after purchasing an additional 116,074 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in Automatic Data Processing by 5.7% in the third quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider’s stock valued at $1,419,951,000 after buying an additional 261,312 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Shares of ADP opened at $209.71 on Tuesday. 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 1-year low of $203.26 and a 1-year high of $329.93. The stock has a market cap of $84.44 billion, a PE ratio of 20.16 and a beta of 0.86. The firm has a fifty day moving average price of $228.22 and a 200 day moving average price of $255.72.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter last year, the company posted $2.35 earnings per share. The business’s quarterly revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 3.2%. Automatic Data Processing’s payout ratio is 65.38%.

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

Analyst Ratings Changes

ADP has been the topic of a number of analyst reports. Stifel Nicolaus cut their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. Cantor Fitzgerald assumed 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. Wells Fargo & Company dropped their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Citigroup cut their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. Finally, Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $288.46.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the business’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 sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP David Foskett sold 266 shares of the stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 4,058 shares of company stock worth $1,000,263. 0.20% of the stock is currently owned by corporate insiders.

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.