Nordea Investment Management AB lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP – Free Report) by 0.8% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 1,174,898 shares of the business services provider’s stock after selling 9,900 shares during the period. Nordea Investment Management AB’s holdings in Automatic Data Processing were worth $303,887,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently modified their holdings of ADP. Imprint Wealth LLC purchased a new position in Automatic Data Processing during the third quarter worth about $25,000. Howard Hughes Medical Institute bought a new stake in Automatic Data Processing in the second quarter worth about $27,000. TruNorth Capital Management LLC purchased a new position in Automatic Data Processing in the third quarter valued at about $28,000. Cloud Capital Management LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter valued at approximately $29,000. Finally, Board of the Pension Protection Fund bought a new position in shares of Automatic Data Processing during the 4th quarter valued at approximately $31,000. Institutional investors own 80.03% of the company’s stock.
Wall Street Analysts Forecast Growth
A number of research analysts have recently commented on the company. Jefferies Financial Group reaffirmed 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. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. JPMorgan Chase & Co. lowered their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Guggenheim assumed coverage on shares of Automatic Data Processing in a research report on Thursday. They set a “buy” rating and a $270.00 target price for the company. Finally, Wells Fargo & Company reduced their target price on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $288.46.
Key Automatic Data Processing News
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: Guggenheim initiated coverage of ADP with a Buy / Strong‑Buy rating and a $270 price target (roughly ~29% upside from recent levels); the firm argued AI fears are premature and flagged ADP’s durable cash flows and dividend profile as positives. Guggenheim initiates coverage of Automatic Data Processing (ADP) with buy recommendation Guggenheim Initiates ADP as Buy, Says Fears around AI Are Premature Zacks summary
- Neutral Sentiment: ADP was highlighted in dividend-stock writeups (InsiderMonkey / other outlets) emphasizing its ~3%+ yield and steady income characteristics — supports longer-term investor interest but is not an immediate catalyst. 5 Dividend Stocks to Buy for Steady Income
- Neutral Sentiment: Published short‑interest data in feeds shows a large March “increase,” but the print is internally inconsistent (zeros/NaN). This appears to be a data error and shouldn’t be treated as a genuine short‑squeeze signal without corrected filings.
- Negative Sentiment: MarketWatch noted ADP underperformed peers recently despite some daily gains, a reminder that positive analyst notes don’t always produce immediate outperformance — investors may be taking profits or reacting to broader market/sector pressure. Automatic Data Processing Inc. stock underperforms
Insider Activity
In related news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Kwon sold 900 shares of the company’s stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president directly owned 11,993 shares in the company, valued at $3,118,180. This trade represents a 6.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,058 shares of company stock valued at $1,000,263 over the last ninety days. 0.20% of the stock is owned by insiders.
Automatic Data Processing Price Performance
Automatic Data Processing stock opened at $208.72 on Friday. The firm has a market capitalization of $84.04 billion, a P/E ratio of 20.07 and a beta of 0.86. Automatic Data Processing, Inc. has a one year low of $203.26 and a one year high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The business has a fifty day moving average price of $229.28 and a 200-day moving average price of $256.66.
Automatic Data Processing (NASDAQ:ADP – Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the company posted $2.35 EPS. The firm’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. As a group, equities research analysts forecast 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 issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is presently 65.38%.
Automatic Data Processing declared that its board has approved a stock buyback plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its shares are undervalued.
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.
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