Vanguard Group Inc. Purchases 389,451 Shares of Automatic Data Processing, Inc. $ADP

Vanguard Group Inc. grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 0.9% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 41,689,633 shares of the business services provider’s stock after buying an additional 389,451 shares during the quarter. Vanguard Group Inc. owned 10.31% of Automatic Data Processing worth $12,235,907,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. Mid American Wealth Advisory Group Inc. bought a new position in Automatic Data Processing in the 2nd quarter valued at $26,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing in the 2nd quarter worth about $27,000. Solstein Capital LLC purchased a new position in shares of Automatic Data Processing during the second quarter worth approximately $28,000. Westside Investment Management Inc. boosted its holdings in shares of Automatic Data Processing by 80.0% in the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 40 shares during the period. Finally, TruNorth Capital Management LLC bought a new position in Automatic Data Processing in the third quarter worth approximately $28,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

ADP has been the topic of a number of recent research reports. Citigroup dropped their price target on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. JPMorgan Chase & Co. reduced their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Jefferies Financial Group restated an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Finally, Morgan Stanley reduced their price target on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday, January 29th. Two analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $290.00.

Automatic Data Processing Trading Up 1.0%

Shares of Automatic Data Processing stock opened at $212.11 on Monday. The firm’s 50 day simple moving average is $252.56 and its two-hundred day simple moving average is $272.15. The firm has a market capitalization of $85.40 billion, a price-to-earnings ratio of 20.40 and a beta of 0.85. Automatic Data Processing, Inc. has a 12-month low of $208.62 and a 12-month high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

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. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the company earned $2.35 EPS. Automatic Data Processing’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. Automatic Data Processing’s dividend payout ratio is 65.38%.

Automatic Data Processing declared that its Board of Directors has approved a share repurchase plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Automatic Data Processing news, VP David Kwon sold 806 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president owned 11,187 shares of the company’s stock, valued at $2,962,317.60. This trade represents a 6.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction dated Tuesday, January 13th. The shares were 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 approximately $2,622,375.42. The trade was a 5.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,515 shares of company stock worth $887,074 over the last quarter. 0.20% of the stock is currently owned by corporate insiders.

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.