Automatic Data Processing, Inc. $ADP Shares Bought by Tandem Investment Advisors Inc.

Tandem Investment Advisors Inc. grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 31.6% during the 3rd quarter, Holdings Channel.com reports. The firm owned 309,538 shares of the business services provider’s stock after acquiring an additional 74,303 shares during the period. Automatic Data Processing makes up approximately 3.1% of Tandem Investment Advisors Inc.’s portfolio, making the stock its 17th largest position. Tandem Investment Advisors Inc.’s holdings in Automatic Data Processing were worth $90,849,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Laurel Wealth Advisors LLC lifted its stake in shares of Automatic Data Processing by 30,110.7% in the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock valued at $1,439,845,000 after purchasing an additional 4,653,304 shares during the period. Norges Bank purchased a new position in Automatic Data Processing in the second quarter valued at about $696,841,000. Amundi lifted its position in shares of Automatic Data Processing by 24.9% during the 2nd quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock valued at $948,549,000 after acquiring an additional 619,829 shares during the period. JPMorgan Chase & Co. lifted its position in shares of Automatic Data Processing by 26.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock valued at $867,445,000 after acquiring an additional 591,800 shares during the period. Finally, Invesco Ltd. increased its stake in Automatic Data Processing by 13.5% in the 2nd quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock valued at $1,411,449,000 after purchasing an additional 544,968 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue ~$5.36B, with revenue up ~6% YoY; management lifted revenue outlook. PR Newswire: ADP Q2 Results
• Positive Sentiment: Large $6 billion share buyback remains a near-term support catalyst by reducing share count and signaling management confidence. MarketBeat: Buyback Article
• Positive Sentiment: Product/innovation push — ADP launched new AI “ADP Assist” agents aimed at improving payroll/HR automation, which supports long-term revenue and margin expansion potential. PR Newswire: ADP AI Launch
• Neutral Sentiment: New coverage initiated at Cantor Fitzgerald — adds another sell-side voice but not yet a material catalyst. AmericanBankingNews: Coverage Initiated
• Negative Sentiment: Morgan Stanley lowered its price target from $311 to $274 and moved to an “equal weight” rating — one of several same‑day cuts pressuring the stock. Benzinga: Morgan Stanley PT Cut
• Negative Sentiment: Citigroup cut its target from $303 to $265 and set a “neutral” rating — another immediate headwind for sentiment. Benzinga: Citigroup PT Cut
• Negative Sentiment: JPMorgan trimmed its target from $295 to $275 and holds an “underweight” stance — contributing to the selloff. Benzinga: JPMorgan PT Cut
• Negative Sentiment: Wells Fargo reduced its target to $262 and kept an “underweight” rating. Benzinga: Wells Fargo PT Cut TickerReport: Wells Fargo Note
• Negative Sentiment: Stifel trimmed its target from $290 to $280 and moved to a “hold” — part of a cluster of downgrades weighing on investor outlook. Benzinga: Stifel PT Cut

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $245.97 on Friday. The firm has a market cap of $99.48 billion, a price-to-earnings ratio of 23.65 and a beta of 0.86. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The company’s 50-day moving average is $258.49 and its two-hundred day moving average is $278.33. Automatic Data Processing, Inc. has a 12-month low of $244.44 and a 12-month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing announced that its board has initiated a stock buyback program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The firm also recently declared 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 is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 2.8%. Automatic Data Processing’s payout ratio is 67.13%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Kwon sold 900 shares of the stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the transaction, the vice president owned 11,993 shares of the company’s stock, valued at $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 available through this link. Also, 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 value of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 2,249 shares of company stock worth $589,852. Corporate insiders own 0.20% of the company’s stock.

Analysts Set New Price Targets

ADP has been the topic of a number of research analyst reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Morgan Stanley cut their price target 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. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday. They issued an “overweight” rating and a $306.00 price objective on the stock. JPMorgan Chase & Co. cut their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday. Finally, Citigroup lowered their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday. Three equities research 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. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $295.38.

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.