Madison Asset Management LLC Lowers Holdings in Automatic Data Processing, Inc. $ADP

Madison Asset Management LLC decreased its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 12.4% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 72,144 shares of the business services provider’s stock after selling 10,204 shares during the quarter. Madison Asset Management LLC’s holdings in Automatic Data Processing were worth $21,174,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of ADP. Harbor Asset Planning Inc. acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $26,000. Mid American Wealth Advisory Group Inc. purchased a new position in Automatic Data Processing during the second quarter worth about $26,000. Howard Hughes Medical Institute acquired a new stake in shares of Automatic Data Processing during the second quarter valued at about $27,000. Solstein Capital LLC purchased a new stake in shares of Automatic Data Processing in the 2nd quarter valued at approximately $28,000. Finally, Westside Investment Management Inc. lifted its holdings in shares of Automatic Data Processing by 80.0% in the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after acquiring an additional 40 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Key Automatic Data Processing News

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

• Positive Sentiment: ADP’s weekly National Employment Report showed U.S. private employers added about 6,500 jobs per week (four weeks ending Jan. 24), supporting continued demand for payroll and HCM services. This macro data can be constructive for ADP’s revenue mix and recurring revenue stream. ADP National Employment Report Preliminary Estimate for January 24, 2026
• Positive Sentiment: ADP’s most recent quarterly results beat on EPS and revenue, and management provided FY2026 EPS guidance in the ~10.09–11.01 range — a sign of continued profitable growth and clear near‑term visibility. That underlying beat/guidance supports longer‑term cash generation.
• Positive Sentiment: The board has authorized a large buyback (≈$6.0B) and ADP maintains a healthy dividend (quarterly $1.70 / ~3% yield), which support shareholder returns and can provide backstop to the share price.
• Neutral Sentiment: Large institutional ownership and recent reported position changes (MarketBeat summary) show ADP remains a widely held, index/ETF‑embedded large cap — this magnifies flows but also dampens volatility from retail noise.
• Negative Sentiment: Short interest rose in late January to ~8.9M shares (about 2.2% of float) with a ~3.2 days-to-cover — increased shorting can pressure the stock if negative catalysts continue or if sentiment weakens. (Note: a February short-interest entry in the feed appears erroneous and should be treated with caution.)
• Negative Sentiment: Recent insider selling by senior VPs (small blocks: 266 and 1,000 shares reported) and headlines calling out larger insider reductions drew attention — while sizes are modest vs. total insider holdings, such disclosures can amplify near‑term investor caution. Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 266 Shares of Stock
• Negative Sentiment: Stifel trimmed its price target (from $280 to $270) and maintains a hold — analyst downgrades/target cuts can exert downward pressure on sentiment and make the stock less attractive for momentum buyers. Benzinga

Automatic Data Processing Trading Down 0.5%

NASDAQ:ADP opened at $225.53 on Wednesday. Automatic Data Processing, Inc. has a 12-month low of $223.44 and a 12-month high of $329.93. The firm has a market cap of $90.81 billion, a PE ratio of 21.69 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 stock has a fifty day moving average price of $255.39 and a 200 day moving average price of $274.17.

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

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 3.0%. Automatic Data Processing’s payout ratio is currently 65.38%.

Automatic Data Processing announced that its board has authorized a stock 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 reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Cantor Fitzgerald started coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective for the company. Morgan Stanley cut 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. Citigroup lowered their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Finally, Stifel Nicolaus cut their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday. Two research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $290.00.

Insider Activity

In related news, 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 completion of the transaction, the vice president owned 11,187 shares in the company, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is currently owned by company insiders.

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.