Automatic Data Processing, Inc. $ADP Stock Holdings Lessened by DAVENPORT & Co LLC

DAVENPORT & Co LLC lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 6.0% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 62,854 shares of the business services provider’s stock after selling 4,031 shares during the period. DAVENPORT & Co LLC’s holdings in Automatic Data Processing were worth $16,168,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Imprint Wealth LLC purchased a new position in Automatic Data Processing in the 3rd quarter worth about $25,000. Howard Hughes Medical Institute acquired a new stake in Automatic Data Processing during the 2nd quarter worth about $27,000. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing during the third quarter valued at about $28,000. Cloud Capital Management LLC purchased a new stake in Automatic Data Processing during the third quarter valued at about $29,000. Finally, Board of the Pension Protection Fund acquired a new position in shares of Automatic Data Processing in the fourth quarter worth about $31,000. 80.03% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms have recently weighed in on ADP. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Jefferies Financial Group restated an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Guggenheim began coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They issued a “buy” rating and a $270.00 price objective for the company. Morgan Stanley cut 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 note on Thursday, January 29th. Finally, Citigroup reduced their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $288.46.

Automatic Data Processing Trading Down 1.4%

NASDAQ:ADP opened at $202.11 on Thursday. The stock has a market cap of $81.38 billion, a PE ratio of 19.43 and a beta of 0.86. Automatic Data Processing, Inc. has a fifty-two week low of $198.59 and a fifty-two week high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The stock’s 50-day moving average is $226.05 and its two-hundred day moving average is $254.71.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping 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 business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. During the same period last year, the company posted $2.35 earnings per share. The firm’s quarterly revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities research analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.4%. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

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

Insider Activity at Automatic Data Processing

In other news, VP David Foskett sold 266 shares of the business’s 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 directly owned 10,954 shares in the company, valued at $2,596,098. The trade was a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 4,058 shares of company stock worth $1,000,263. Corporate 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.