Automatic Data Processing, Inc. $ADP Stock Holdings Lessened by Verdence Capital Advisors LLC

Verdence Capital Advisors LLC trimmed its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 48.0% in the third quarter, according to its most recent filing with the SEC. The firm owned 3,967 shares of the business services provider’s stock after selling 3,661 shares during the period. Verdence Capital Advisors LLC’s holdings in Automatic Data Processing were worth $1,024,000 as of its most recent filing with the SEC.

Other institutional investors have also made changes to their positions in the company. Northwestern Mutual Wealth Management Co. bought a new stake in Automatic Data Processing in the second quarter valued at $13,283,000. Royal Capital Wealth Management LLC acquired a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $1,226,000. Canada Pension Plan Investment Board acquired a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $152,706,000. Fulton Bank N.A. grew its holdings in shares of Automatic Data Processing by 192.0% in the 2nd quarter. Fulton Bank N.A. now owns 7,165 shares of the business services provider’s stock worth $1,605,000 after purchasing an additional 4,711 shares during the last quarter. Finally, Bank of America Corp DE bought a new stake in shares of Automatic Data Processing in the 2nd quarter worth about $1,231,175,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, VP Joseph Desilva sold 631 shares of Automatic Data Processing stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president directly owned 18,824 shares of the company’s stock, valued at $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian Michaud sold 120 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the transaction, the vice president owned 18,442 shares in the company, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 31,359 shares of company stock valued at $8,809,422. 0.15% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

ADP has been the subject of a number of recent analyst reports. Morgan Stanley increased their target price on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. TD Cowen lifted their price target on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a report on Monday, July 6th. Wells Fargo & Company boosted their price target on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Citigroup upped their price objective on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a research note on Thursday, July 30th. Finally, Stifel Nicolaus raised their price objective on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have issued 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 an average price target of $280.64.

Automatic Data Processing Trading Down 2.6%

ADP stock opened at $285.37 on Thursday. The business has a fifty day moving average price of $276.79 and a 200 day moving average price of $240.57. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $309.40. The stock has a market capitalization of $113.08 billion, a price-to-earnings ratio of 26.09, a P/E/G ratio of 2.75 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping analysts’ consensus estimates of $2.77 by $0.05. The company had revenue of $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The business’s revenue was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.49 earnings per share. Analysts expect that Automatic Data Processing, Inc. will post 12.27 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were paid a $1.70 dividend. The ex-dividend date was Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.4%. Automatic Data Processing’s dividend payout ratio (DPR) is 62.16%.

Automatic Data Processing News Summary

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

• Positive Sentiment: Fiscal Q1 results exceeded expectations. ADP reported adjusted earnings of $2.82 per share, above the $2.77 consensus estimate, while revenue increased 6.1% year over year to $5.49 billion, slightly ahead of forecasts. Earnings rose from $2.49 per share in the prior-year quarter. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. ADP now expects adjusted EPS growth of approximately 10% to 12% and lifted its client funds interest revenue outlook to $1.59 billion-$1.61 billion. Stronger segment performance and higher interest income supported the improved forecast. ADP Fiscal 2027 Outlook
• Positive Sentiment: ADP expanded its distribution strategy. A new agreement with PNC Bank will embed ADP payroll, HR, benefits, time, insurance and retirement services into PNC’s digital banking platform for small businesses, potentially improving customer acquisition and retention. PNC Bank and ADP Announce Embedded Payroll Solution
• Neutral Sentiment: Analyst views remained mixed. Guggenheim raised its price target to $340, while UBS maintained a Hold rating. These actions suggest upside recognition from some analysts but limited conviction overall.
• Negative Sentiment: Jefferies retained an Underperform rating. Although it increased its price target from $225 to $250, the new target still implies roughly 12.4% downside based on the referenced share price. The cautious rating and ADP’s relatively elevated valuation may have encouraged profit-taking after the earnings release.

About Automatic Data Processing

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.