Automatic Data Processing (NASDAQ:ADP) Reaches New 1-Year Low on Insider Selling

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) reached a new 52-week low during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $224.93 and last traded at $226.63, with a volume of 3376471 shares traded. The stock had previously closed at $231.36.

Specifically, VP David Foskett sold 266 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analyst Ratings Changes

ADP has been the topic of several recent research reports. Cantor Fitzgerald began coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. JPMorgan Chase & Co. reduced their target price 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 reaffirmed an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Wells Fargo & Company dropped 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, Stifel Nicolaus reduced their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research note on Monday. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Stock Performance

The firm’s 50 day moving average price is $256.02 and its 200-day moving average price is $274.75. The firm has a market cap of $91.25 billion, a price-to-earnings ratio of 21.79 and a beta of 0.85. 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 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. The firm had revenue of $5.36 billion during the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same period in the prior year, the company earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

Automatic Data Processing announced that its board has authorized a share repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Automatic Data Processing

Several large investors have recently added to or reduced their stakes in ADP. Laurel Wealth Advisors LLC increased its holdings in Automatic Data Processing by 30,110.7% in 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 buying an additional 4,653,304 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in shares of Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after acquiring an additional 3,415,576 shares in the last quarter. Norges Bank acquired a new stake in shares of Automatic Data Processing during the 2nd quarter valued at about $696,841,000. Wellington Management Group LLP increased its stake in Automatic Data Processing by 47.8% in the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock valued at $2,004,691,000 after acquiring an additional 2,208,927 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its position in 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 in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.