Automatic Data Processing, Inc. $ADP Shares Sold by Brown Brothers Harriman & Co.

Brown Brothers Harriman & Co. cut its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.5% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 747,361 shares of the business services provider’s stock after selling 11,134 shares during the period. Automatic Data Processing accounts for approximately 1.3% of Brown Brothers Harriman & Co.’s holdings, making the stock its 22nd biggest holding. Brown Brothers Harriman & Co. owned approximately 0.18% of Automatic Data Processing worth $219,350,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Vanguard Group Inc. grew its position in Automatic Data Processing by 0.9% during the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock valued at $12,235,907,000 after acquiring an additional 389,451 shares during the period. State Street Corp raised its holdings in shares of Automatic Data Processing by 1.0% in 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 period. Capital Research Global Investors lifted its stake in shares of Automatic Data Processing by 1.5% in the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock valued at $2,354,220,000 after purchasing an additional 116,074 shares in the last quarter. Invesco Ltd. lifted its stake in shares of Automatic Data Processing by 5.7% in the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider’s stock valued at $1,419,951,000 after purchasing an additional 261,312 shares in the last quarter. Finally, Laurel Wealth Advisors LLC grew its holdings in shares of Automatic Data Processing by 30,110.7% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after purchasing an additional 4,653,304 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Up 0.5%

ADP opened at $208.52 on Friday. The firm’s 50 day moving average is $234.58 and its 200-day moving average is $260.24. Automatic Data Processing, Inc. has a 52-week low of $203.26 and a 52-week high of $329.93. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $83.96 billion, a P/E ratio of 20.05 and a beta of 0.86.

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 for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same period last year, the business earned $2.35 EPS. The business’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. Analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently declared 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. The ex-dividend date is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.3%. Automatic Data Processing’s payout ratio is 65.38%.

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

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on ADP shares. Morgan Stanley dropped their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday, January 29th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Citigroup dropped their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. JPMorgan Chase & Co. cut their target price 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. Finally, Stifel Nicolaus reduced their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a report on Monday, February 9th. Two analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $290.00.

Insiders Place Their Bets

In related news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP David Foskett sold 266 shares of the stock in a transaction 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 transaction, the vice president owned 10,954 shares in the company, valued at $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 3,515 shares of company stock worth $887,074. Company insiders own 0.20% 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.