Automatic Data Processing (NASDAQ:ADP) VP David Kwon Sells 900 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) VP David Kwon sold 900 shares of the stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the sale, the vice president directly owned 11,993 shares in the company, valued at approximately $3,118,180. This represents a 6.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Automatic Data Processing Price Performance

ADP stock opened at $265.67 on Friday. Automatic Data Processing, Inc. has a 12 month low of $247.18 and a 12 month high of $329.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The company has a 50-day moving average price of $257.48 and a 200 day moving average price of $283.43. The stock has a market cap of $107.45 billion, a PE ratio of 26.23 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. The company had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same period in the prior year, the company posted $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 1st. Investors of record on Friday, December 12th were paid a dividend of $1.70 per share. The ex-dividend date of this dividend was Friday, December 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. This is an increase from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s dividend payout ratio is 67.13%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Aull & Monroe Investment Management Corp lifted its holdings in shares of Automatic Data Processing by 0.6% during the fourth quarter. Aull & Monroe Investment Management Corp now owns 15,504 shares of the business services provider’s stock worth $3,988,000 after purchasing an additional 100 shares during the period. TABR Capital Management LLC purchased a new position in Automatic Data Processing during the 4th quarter worth approximately $4,553,000. 180 Wealth Advisors LLC lifted its stake in Automatic Data Processing by 24.4% during the 4th quarter. 180 Wealth Advisors LLC now owns 1,306 shares of the business services provider’s stock valued at $336,000 after acquiring an additional 256 shares during the period. Carr Financial Group Corp purchased a new stake in shares of Automatic Data Processing in the 4th quarter valued at $216,000. Finally, Marshall Financial Group LLC acquired a new stake in shares of Automatic Data Processing in the fourth quarter worth $824,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. Wells Fargo & Company lowered their target price on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, UBS Group dropped their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a research note on Wednesday, September 17th. Two research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $306.42.

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.