Short Interest in Automatic Data Processing, Inc. (NASDAQ:ADP) Increases By 18.0%

Automatic Data Processing, Inc. (NASDAQ:ADP) saw a large growth in short interest in the month of March. As of March 13th, there was short interest totaling 12,423,011 shares, a growth of 18.0% from the February 26th total of 10,524,424 shares. Approximately 3.1% of the company’s stock are short sold. Based on an average daily volume of 3,765,568 shares, the short-interest ratio is currently 3.3 days.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $205.47 on Tuesday. Automatic Data Processing has a fifty-two week low of $198.59 and a fifty-two week high of $329.93. The stock’s 50-day moving average is $222.65 and its two-hundred day moving average is $252.45. The firm has a market cap of $82.73 billion, a P/E ratio of 19.76 and a beta of 0.86. 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 (NASDAQ:ADP) last released its quarterly earnings results 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 during the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the company posted $2.35 EPS. 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. On average, analysts anticipate that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

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

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Insiders Place Their Bets

In other news, 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. This represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Brian L. Michaud sold 1,000 shares of the firm’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 transaction of $234,180.00. Following the sale, the vice president owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 4,058 shares of company stock worth $1,000,263 over the last quarter. Company insiders own 0.20% of the company’s stock.

Institutional Trading of Automatic Data Processing

Several large investors have recently modified their holdings of ADP. Vanguard Group Inc. raised its holdings in 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 worth $12,235,907,000 after acquiring an additional 389,451 shares during the period. State Street Corp grew its position in shares of Automatic Data Processing by 0.7% in the fourth quarter. State Street Corp now owns 18,940,841 shares of the business services provider’s stock valued at $4,903,769,000 after purchasing an additional 133,039 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Automatic Data Processing by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 11,576,572 shares of the business services provider’s stock worth $2,977,777,000 after purchasing an additional 136,876 shares during the period. Capital Research Global Investors lifted its position in shares of Automatic Data Processing by 4.6% during the 4th quarter. Capital Research Global Investors now owns 8,393,607 shares of the business services provider’s stock worth $2,159,088,000 after purchasing an additional 372,413 shares during the last quarter. Finally, Wellington Management Group LLP lifted its position in shares of Automatic Data Processing by 8.0% during the 4th quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock worth $1,896,944,000 after purchasing an additional 544,210 shares during the last quarter. 80.03% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms have recently commented on ADP. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target on the stock. JPMorgan Chase & Co. cut their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Jefferies Financial Group restated an “underperform” rating and issued 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 dropped their target price on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a research report on Friday. Finally, Stifel Nicolaus reduced their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and a consensus price target of $284.77.

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.