Brian Michaud Sells 1,000 Shares of Automatic Data Processing (NASDAQ:ADP) Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Brian Michaud sold 1,000 shares of the firm’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Automatic Data Processing Trading Down 2.0%

Shares of Automatic Data Processing stock traded down $4.74 during mid-day trading on Monday, hitting $226.62. The stock had a trading volume of 3,246,611 shares, compared to its average volume of 2,542,269. The firm has a 50-day moving average of $256.60 and a two-hundred day moving average of $275.31. The firm has a market cap of $91.25 billion, a P/E ratio of 21.79 and a beta of 0.85. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 12-month low of $224.93 and a 12-month high of $329.93.

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

Automatic Data Processing Announces Dividend

The firm 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 dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

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

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Stifel Nicolaus dropped their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research report on Monday. JPMorgan Chase & Co. dropped 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 report on Thursday, January 29th. Morgan Stanley decreased their price target on 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. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $290.00.

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds have recently bought and sold shares of the stock. Imprint Wealth LLC acquired a new stake in Automatic Data Processing in the third quarter valued at approximately $25,000. Harbor Asset Planning Inc. acquired a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth $26,000. Howard Hughes Medical Institute acquired a new position in shares of Automatic Data Processing during the second quarter worth $27,000. Finally, Solstein Capital LLC purchased a new position in Automatic Data Processing in the second quarter valued at $28,000. Institutional investors and hedge funds own 80.03% 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.