Hilltop Holdings Inc. Makes New $5.29 Million Investment in Automatic Data Processing, Inc. $ADP

Hilltop Holdings Inc. acquired a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor acquired 18,030 shares of the business services provider’s stock, valued at approximately $5,292,000.

Other hedge funds also recently bought and sold shares of the company. Gotham Asset Management LLC boosted its stake in shares of Automatic Data Processing by 27.4% in the 3rd quarter. Gotham Asset Management LLC now owns 137,130 shares of the business services provider’s stock valued at $40,248,000 after purchasing an additional 29,514 shares in the last quarter. Fayez Sarofim & Co lifted its stake in Automatic Data Processing by 1.2% in the third quarter. Fayez Sarofim & Co now owns 1,352,576 shares of the business services provider’s stock worth $396,981,000 after purchasing an additional 15,383 shares during the last quarter. Distillate Capital Partners LLC purchased a new stake in Automatic Data Processing during the third quarter valued at about $21,699,000. Element Capital Management LLC purchased a new stake in Automatic Data Processing during the third quarter valued at about $501,000. Finally, Elevation Point Wealth Partners LLC grew its stake in shares of Automatic Data Processing by 181.5% during the third quarter. Elevation Point Wealth Partners LLC now owns 16,789 shares of the business services provider’s stock valued at $4,950,000 after buying an additional 10,824 shares during the last quarter. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $208.52 on Monday. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. The firm’s 50-day moving average is $234.58 and its 200 day moving average is $259.63. The stock has a market cap of $83.96 billion, a price-to-earnings ratio of 20.05 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. During the same period in the previous year, the company earned $2.35 earnings per share. 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. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

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

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Insiders Place Their Bets

In other news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research firms recently issued reports on ADP. Jefferies Financial Group restated an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Citigroup lowered their price target on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Cantor Fitzgerald initiated coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective on the stock. Wells Fargo & Company reduced their target price on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Finally, Morgan Stanley cut their price target on shares of 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. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing has an average rating of “Hold” and a consensus target price of $290.00.

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.