Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Up 20.7% in January

Automatic Data Processing, Inc. (NASDAQ:ADP) saw a large increase in short interest in the month of January. As of January 30th, there was short interest totaling 8,901,390 shares, an increase of 20.7% from the January 15th total of 7,377,784 shares. Currently, 2.2% of the company’s shares are short sold. Based on an average daily volume of 2,810,636 shares, the days-to-cover ratio is presently 3.2 days. Based on an average daily volume of 2,810,636 shares, the days-to-cover ratio is presently 3.2 days. Currently, 2.2% of the company’s shares are short sold.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP David Foskett sold 266 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. This represents 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 90 days, insiders have sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Several institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its stake in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock worth $2,935,000 after buying an additional 4,808 shares during the last quarter. Bison Wealth LLC boosted its holdings in shares of Automatic Data Processing by 22.8% during 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 during the period. Forvis Mazars Wealth Advisors LLC grew its position in shares of Automatic Data Processing by 1.1% during the second quarter. Forvis Mazars Wealth Advisors LLC now owns 3,709 shares of the business services provider’s stock worth $1,144,000 after acquiring an additional 40 shares during the last quarter. Stephens Inc. AR increased its holdings in shares of Automatic Data Processing by 2.7% in the 2nd quarter. Stephens Inc. AR now owns 28,013 shares of the business services provider’s stock worth $8,700,000 after acquiring an additional 724 shares during the period. Finally, Accretive Wealth Partners LLC increased its holdings in shares of Automatic Data Processing by 0.6% in the 2nd quarter. Accretive Wealth Partners LLC now owns 8,509 shares of the business services provider’s stock worth $2,624,000 after acquiring an additional 47 shares during the period. 80.03% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

ADP has been the subject of several recent research reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective on the stock. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Finally, Wells Fargo & Company dropped their target price 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 research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Price Performance

Shares of ADP opened at $212.11 on Tuesday. Automatic Data Processing has a 52 week low of $208.62 and a 52 week 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 firm has a market cap of $85.40 billion, a price-to-earnings ratio of 20.40 and a beta of 0.85. The stock has a 50 day moving average of $251.62 and a 200-day moving average of $271.46.

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 (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 firm had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same period last year, the business posted $2.35 earnings per share. The firm’s revenue for the quarter 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. As a group, analysts forecast that Automatic Data Processing will post 9.93 EPS for the current year.

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

Automatic Data Processing Announces Dividend

The firm also recently disclosed 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 dividend on an annualized basis and a dividend yield of 3.2%. 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 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.