Stephens Inc. AR Increases Holdings in Automatic Data Processing, Inc. $ADP

Stephens Inc. AR increased its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 11.1% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 31,130 shares of the business services provider’s stock after purchasing an additional 3,117 shares during the quarter. Stephens Inc. AR’s holdings in Automatic Data Processing were worth $9,253,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. Mid American Wealth Advisory Group Inc. bought a new position in shares of Automatic Data Processing during the 2nd quarter worth $26,000. Harbor Asset Planning Inc. bought a new stake in shares of Automatic Data Processing in the second quarter valued at about $26,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing in the second quarter worth about $27,000. Solstein Capital LLC bought a new position in Automatic Data Processing during the 2nd quarter worth about $28,000. Finally, Westside Investment Management Inc. increased its position in Automatic Data Processing by 80.0% during the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 40 shares during the period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Board authorizes $6.0 billion share repurchase (up to ~5.8% of outstanding stock) — buybacks reduce share count and signal management believes shares are undervalued, which typically supports the stock and EPS. ADP AUTHORIZED TO PURCHASE $6 BILLION OF ITS COMMON STOCK
• Positive Sentiment: Board declares regular quarterly dividend of $1.70/share payable April 1, 2026 — steady dividend income and a raised/maintained payout tend to attract income-oriented investors and signal confidence in cash flow. ADP Declares Regular Quarterly Dividend
• Neutral Sentiment: ADP National Employment Report (NER Pulse) shows private employers adding ~11,750 jobs per week (four weeks ending Dec 20, 2025) — reinforces ADP’s core data business and demand for payroll/HR services but is not a direct earnings driver in the near term. ADP National Employment Report Preliminary Estimate December 20, 2025
• Neutral Sentiment: Coverage and analyst target shifts are getting attention — analyst reassessments can move sentiment but the net impact depends on whether targets are raised or lowered; watch for specific rating/target changes. How The Story Behind Automatic Data Processing (ADP) Is Shifting With New Analyst Targets
• Negative Sentiment: Insider sales: VP David Kwon sold 806 shares (~$213k) on Jan 12 (reducing his stake ~6.7%) — single executive sales can be perceived negatively if viewed as lack of conviction, though the position remains sizable. SEC Filing — David Kwon Sale
• Negative Sentiment: Insider sales: VP Christopher D’ambrosio sold 543 shares (~$142k) on Jan 13 (reducing his stake ~5.2%) — another modest, routine sale that investors may note but is small relative to overall float. SEC Filing — Christopher D’ambrosio Sale

Automatic Data Processing Stock Up 0.6%

Automatic Data Processing stock opened at $258.50 on Thursday. Automatic Data Processing, Inc. has a 1-year low of $247.18 and a 1-year high of $329.93. The business has a fifty day moving average price of $257.64 and a 200-day moving average price of $282.05. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market capitalization of $104.55 billion, a price-to-earnings ratio of 25.52 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, beating analysts’ consensus estimates of $2.44 by $0.05. The company had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The firm’s revenue was up 7.1% compared to the same quarter last year. During the same period last year, the business posted $2.33 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities research analysts forecast 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 given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 67.13%.

Automatic Data Processing declared that its Board of Directors has authorized a share repurchase 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 repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. UBS Group lowered their price target on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a research report on Wednesday, September 17th. Jefferies Financial Group restated an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Wells Fargo & Company dropped their target price on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Citigroup began coverage on Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective for the company. Two investment 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. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $306.42.

Insider Buying and Selling

In other news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP David Kwon sold 806 shares of the business’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $264.80, for a total transaction of $213,428.80. Following the sale, the vice president directly owned 11,187 shares in the company, valued at $2,962,317.60. This trade represents a 6.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 2,249 shares of company stock valued at $589,852 over the last quarter. 0.20% of the stock is owned by company insiders.

Automatic Data Processing 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.