Automatic Data Processing (NASDAQ:ADP) Reaches New 52-Week Low After Insider Selling

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price reached a new 52-week low during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $224.93 and last traded at $226.63, with a volume of 3376471 shares trading hands. The stock had previously closed at $231.36.

Specifically, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Morgan Stanley decreased their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, JPMorgan Chase & Co. decreased their price target on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Automatic Data Processing presently has a consensus rating of “Hold” and an average price target of $290.00.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: Recent fundamentals remain constructive: ADP reported a quarterly beat and issued FY2026 EPS guidance in early Q4 reporting, and the board approved a $6.0B buyback and a $1.70 quarterly dividend — items that support long-term shareholder value.
• Positive Sentiment: ADP’s weekly National Employment Report showed U.S. private employers adding ~6,500 jobs/week (four weeks ending Jan 24), which underscores continued demand for payroll/HCM services. ADP NER PR
• Neutral Sentiment: Commentary suggests HCM names may be oversold after a strong jobs report; this could imply a buying opportunity or continued volatility depending on macro trends. Zacks HCM piece
• Neutral Sentiment: Recent short-interest data include conflicting reports (some data show 0 shares — likely a reporting anomaly). Treat those zero figures with caution while relying on verified mid-January/late-January reads.
• Negative Sentiment: Analyst pressure: Stifel cut its price target to $270 (hold), and several other shops lowered targets in late January — analyst downgrades/target trims can trigger selling. Stifel price-target cut
• Negative Sentiment: Insider selling headlines — a VP sold 266 shares (small dollar amount) and other reports flagged insider disposition; media coverage of insider sales can amplify negative sentiment even when transactions are modest. InsiderTrades filing Yahoo: insider holdings sold
• Negative Sentiment: Raised short interest in late January: ~8.9M shares were reported sold short (~2.2% of shares), with a ~3.2 days-to-cover — an increase in bearish positioning can magnify downward pressure during market stress.

Automatic Data Processing Price Performance

The firm has a market capitalization of $87.60 billion, a price-to-earnings ratio of 20.92 and a beta of 0.85. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The business has a 50-day moving average price of $254.54 and a two-hundred day moving average price of $273.77.

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

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s payout ratio is 65.38%.

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Imprint Wealth LLC acquired a new position in Automatic Data Processing during the 3rd quarter valued at about $25,000. Harbor Asset Planning Inc. acquired a new position in shares of Automatic Data Processing during the second quarter valued at approximately $26,000. Mid American Wealth Advisory Group Inc. bought a new stake in Automatic Data Processing during the second quarter worth approximately $26,000. Howard Hughes Medical Institute acquired a new stake in Automatic Data Processing in the second quarter worth approximately $27,000. Finally, Solstein Capital LLC bought a new position in Automatic Data Processing during the 2nd quarter valued at $28,000. 80.03% of the stock is owned by institutional investors and hedge funds.

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.