State of Michigan Retirement System Reduces Stock Position in Automatic Data Processing, Inc. $ADP

State of Michigan Retirement System cut its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.4% during the fourth quarter, Holdings Channel reports. The institutional investor owned 117,603 shares of the business services provider’s stock after selling 5,400 shares during the period. State of Michigan Retirement System’s holdings in Automatic Data Processing were worth $30,251,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of ADP. Imprint Wealth LLC purchased a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $25,000. TruNorth Capital Management LLC acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $28,000. Cloud Capital Management LLC purchased a new stake in Automatic Data Processing during the third quarter worth approximately $29,000. Y.D. More Investments Ltd acquired a new position in Automatic Data Processing in the third quarter valued at approximately $32,000. Finally, Board of the Pension Protection Fund acquired a new position in Automatic Data Processing in the fourth quarter valued at approximately $31,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have commented on ADP shares. Guggenheim started coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They set a “buy” rating and a $270.00 price objective on the stock. Cantor Fitzgerald lowered their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating for the company in a report on Tuesday, April 21st. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. JPMorgan Chase & Co. cut their price target on shares of 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. Finally, Citigroup reduced their price target on shares of 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. One research 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 given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $273.85.

Insider Activity at Automatic Data Processing

In related news, 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 completion of the sale, the vice president owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the sale, the vice president owned 8,912 shares of the company’s stock, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,809 shares of company stock worth $410,410 in the last 90 days. 0.20% of the stock is owned by insiders.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $196.53 on Monday. The stock’s 50 day moving average price is $207.37 and its 200 day moving average price is $240.22. The company has a market capitalization of $79.13 billion, a PE ratio of 18.90 and a beta of 0.85. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping the consensus estimate 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 quarter in the previous year, the company posted $2.35 earnings per share. The firm’s revenue 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. On average, research analysts anticipate that Automatic Data Processing, Inc. will post 10.96 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing’s payout ratio is presently 65.38%.

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

Automatic Data Processing 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.