Automatic Data Processing, Inc. $ADP Stock: Sumitomo Mitsui Trust Group Inc. Lowers Position

Sumitomo Mitsui Trust Group Inc. cut its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.5% in the third quarter, Holdings Channel.com reports. The fund owned 935,913 shares of the business services provider’s stock after selling 34,318 shares during the quarter. Sumitomo Mitsui Trust Group Inc.’s holdings in Automatic Data Processing were worth $241,522,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Automatic Data Processing in the third quarter worth $179,592,000. Aviance Capital Partners LLC grew its stake in Automatic Data Processing by 0.4% in the 3rd quarter. Aviance Capital Partners LLC now owns 9,298 shares of the business services provider’s stock valued at $2,399,000 after buying an additional 37 shares during the last quarter. Vise Technologies Inc. acquired a new position in Automatic Data Processing in the 3rd quarter valued at $7,168,000. Investment Partners LTD. raised its holdings in Automatic Data Processing by 46.8% in the 3rd quarter. Investment Partners LTD. now owns 10,250 shares of the business services provider’s stock worth $2,645,000 after acquiring an additional 3,270 shares during the period. Finally, Cidel Asset Management Inc. raised its holdings in Automatic Data Processing by 8.8% in the 3rd quarter. Cidel Asset Management Inc. now owns 2,093 shares of the business services provider’s stock worth $540,000 after acquiring an additional 169 shares during the period. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $293.84 on Monday. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $309.40. The company has a 50-day moving average of $277.25 and a two-hundred day moving average of $240.83. The company has a market cap of $116.43 billion, a PE ratio of 26.05, a P/E/G ratio of 2.64 and a beta of 0.83. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, beating the consensus estimate 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 net margin of 20.33% and a return on equity of 77.01%. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the firm earned $2.49 EPS. As a group, equities analysts expect that Automatic Data Processing, Inc. will post 12.36 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, September 11th. Automatic Data Processing’s dividend payout ratio is 60.28%.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Brian Michaud sold 120 shares of the 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 completion of the transaction, the vice president owned 18,442 shares in the company, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer owned 80,624 shares in the company, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. 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. Insiders sold 31,359 shares of company stock worth $8,809,422 over the last three months. 0.15% of the stock is currently owned by insiders.

Automatic Data Processing News Roundup

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Analyst Upgrades and Downgrades

ADP has been the topic of several research analyst reports. Weiss Ratings raised Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, September 22nd. Citigroup boosted their price objective on Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a research report on Thursday. UBS Group upped their price target on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. TD Cowen boosted their target price on shares of Automatic Data Processing from $216.00 to $223.00 and gave the stock a “hold” rating in a research report on Monday, July 6th. Finally, Cantor Fitzgerald upped their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Three 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 stock. According to MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average price target of $283.27.

Automatic Data Processing Profile

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.