Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells $234,180.00 in Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Brian Michaud sold 1,000 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction 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 $3,585,295.80. The trade was a 6.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $217.57 on Thursday. 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, Inc. has a one year low of $216.65 and a one year high of $329.93. The company’s 50-day simple moving average is $254.54 and its 200-day simple moving average is $273.77. The stock has a market capitalization of $87.60 billion, a price-to-earnings ratio of 20.92 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating 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 firm had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the company earned $2.35 earnings per share. Automatic Data Processing’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 analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company 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 dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

Automatic Data Processing declared that its Board of Directors has initiated a stock buyback 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 purchase up to 5.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

ADP has been the topic of a number of research reports. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. JPMorgan Chase & Co. dropped 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 cut their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, Wells Fargo & Company dropped their price target on 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. Two equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $290.00.

Trending Headlines about Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Recent fundamentals remain constructive: ADP reported a quarterly beat and issued FY2026 EPS guidance in early Q4 reporting, and the board approved a $6.0B buyback and a $1.70 quarterly dividend — items that support long-term shareholder value.
• Positive Sentiment: ADP’s weekly National Employment Report showed U.S. private employers adding ~6,500 jobs/week (four weeks ending Jan 24), which underscores continued demand for payroll/HCM services. ADP NER PR
• Neutral Sentiment: Commentary suggests HCM names may be oversold after a strong jobs report; this could imply a buying opportunity or continued volatility depending on macro trends. Zacks HCM piece
• Neutral Sentiment: Recent short-interest data include conflicting reports (some data show 0 shares — likely a reporting anomaly). Treat those zero figures with caution while relying on verified mid-January/late-January reads.
• Negative Sentiment: Analyst pressure: Stifel cut its price target to $270 (hold), and several other shops lowered targets in late January — analyst downgrades/target trims can trigger selling. Stifel price-target cut
• Negative Sentiment: Insider selling headlines — a VP sold 266 shares (small dollar amount) and other reports flagged insider disposition; media coverage of insider sales can amplify negative sentiment even when transactions are modest. InsiderTrades filing Yahoo: insider holdings sold
• Negative Sentiment: Raised short interest in late January: ~8.9M shares were reported sold short (~2.2% of shares), with a ~3.2 days-to-cover — an increase in bearish positioning can magnify downward pressure during market stress.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC grew its position in Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after buying an additional 4,808 shares in the last quarter. Bison Wealth LLC boosted its holdings in shares of Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after acquiring an additional 681 shares in the last quarter. Robertson Stephens Wealth Management LLC increased its stake in shares of Automatic Data Processing by 7.0% during the second quarter. Robertson Stephens Wealth Management LLC now owns 2,256 shares of the business services provider’s stock valued at $699,000 after acquiring an additional 147 shares during the period. Fifth Third Wealth Advisors LLC increased its stake in shares of Automatic Data Processing by 9.7% during the second quarter. Fifth Third Wealth Advisors LLC now owns 6,712 shares of the business services provider’s stock valued at $2,070,000 after acquiring an additional 594 shares during the period. Finally, Apollon Wealth Management LLC raised its holdings in Automatic Data Processing by 3.7% during the second quarter. Apollon Wealth Management LLC now owns 15,009 shares of the business services provider’s stock worth $4,629,000 after purchasing an additional 532 shares in the last quarter. Institutional investors 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.