Alecta Tjanstepension Omsesidigt Acquires New Shares in Automatic Data Processing, Inc. $ADP

Alecta Tjanstepension Omsesidigt acquired a new position in Automatic Data Processing, Inc. (NASDAQ:ADP) in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 233,400 shares of the business services provider’s stock, valued at approximately $68,468,000. Alecta Tjanstepension Omsesidigt owned 0.06% of Automatic Data Processing at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in ADP. Exchange Traded Concepts LLC raised its stake in Automatic Data Processing by 141.5% in the third quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider’s stock valued at $3,899,000 after buying an additional 7,782 shares during the last quarter. Mitchell Capital Management Co. grew its stake in shares of Automatic Data Processing by 325.0% during the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider’s stock worth $1,996,000 after acquiring an additional 5,200 shares during the last quarter. Atlantic Union Bankshares Corp increased its holdings in shares of Automatic Data Processing by 136.0% during the third quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider’s stock valued at $14,080,000 after acquiring an additional 27,644 shares in the last quarter. CIBC Asset Management Inc raised its position in shares of Automatic Data Processing by 2.6% in the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock valued at $53,875,000 after purchasing an additional 4,720 shares during the last quarter. Finally, Thrivent Financial for Lutherans raised its position in shares of Automatic Data Processing by 18.4% in the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider’s stock valued at $40,566,000 after purchasing an additional 21,444 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have weighed in 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 on the stock in a research report on Thursday, January 29th. Stifel Nicolaus decreased their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday, February 9th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective on the stock. Finally, JPMorgan Chase & Co. cut their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Two investment 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.com, the company has an average rating of “Hold” and an average target price of $290.00.

Insider Activity

In related news, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares in the company, valued at $3,585,295.80. The trade was a 6.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of 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 position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 4,058 shares of company stock worth $1,000,263. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Trading Down 0.7%

Automatic Data Processing stock opened at $208.28 on Thursday. The firm has a market cap of $83.86 billion, a PE ratio of 20.03 and a beta of 0.86. Automatic Data Processing, Inc. has a 12 month low of $203.26 and a 12 month high of $329.93. The stock’s 50 day simple moving average is $231.53 and its two-hundred day simple moving average is $257.95. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results 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 net margin of 19.96% and a return on equity of 68.44%. 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 firm earned $2.35 EPS. The business’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. Analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. Automatic Data Processing’s payout ratio is presently 65.38%.

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

About Automatic Data Processing

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.