Exchange Traded Concepts LLC Has $4.05 Million Holdings in Automatic Data Processing, Inc. $ADP

Exchange Traded Concepts LLC raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 18.7% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 15,762 shares of the business services provider’s stock after purchasing an additional 2,479 shares during the period. Exchange Traded Concepts LLC’s holdings in Automatic Data Processing were worth $4,054,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Vanguard Group Inc. lifted its stake in shares of Automatic Data Processing by 0.9% in 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 buying an additional 389,451 shares during the period. State Street Corp increased its stake in Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock valued at $5,820,445,000 after acquiring an additional 187,415 shares during the period. Capital Research Global Investors grew its holdings in shares of Automatic Data Processing by 1.5% during the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after purchasing an additional 116,074 shares in the last quarter. Wellington Management Group LLP grew its holdings in shares of Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Finally, Invesco Ltd. increased its position in shares of Automatic Data Processing by 5.7% during the third 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 during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Trading Up 2.1%

ADP stock opened at $205.47 on Tuesday. The business has a fifty day moving average price of $222.65 and a 200 day moving average price of $252.45. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing, Inc. has a fifty-two week low of $198.59 and a fifty-two week high of $329.93. The stock has a market capitalization of $82.73 billion, a price-to-earnings ratio of 19.76 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. Automatic Data Processing’s quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the prior year, the business earned $2.35 earnings per share. 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 Dividend Announcement

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

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

Analysts Set New Price Targets

A number of brokerages recently commented on ADP. Morgan Stanley cut their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Cantor Fitzgerald assumed 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 for the company. Stifel Nicolaus decreased 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 research report on Monday, February 9th. Finally, Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and an average price target of $284.77.

Insider Buying and Selling

In related news, VP David Foskett sold 266 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the sale, the vice president owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Brian L. Michaud sold 1,000 shares of the 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 sale, the vice president owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 4,058 shares of company stock worth $1,000,263. Corporate insiders own 0.20% of the company’s stock.

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.